The Kenya Revenue Authority (KRA) has moved to clarify the application of a new Sh3.2 million minimum yield for consolidated cargo, saying the figure does not represent a fixed tax charge on importers.
The clarification follows concerns among small-scale traders who feared the revised threshold could significantly increase the cost of importing goods through cargo consolidation.
KRA said the minimum yield is a risk-management benchmark designed to streamline the clearance of consolidated cargo and identify containers that can be processed with minimal Customs intervention.
Cargo consolidation enables small-scale traders to combine shipments in a single container, reducing the cost and administrative burden associated with clearing numerous small consignments individually.
The revised minimum yield came into effect on August 21, 2026, following consultations between KRA and industry stakeholders. The Authority said traders had also been granted a one-month grace period before implementation.
According to KRA, the benchmark is used to identify containers that meet established risk parameters and can therefore qualify for simplified clearance.
“The minimum yield serves as a reference point for identifying containers that meet the threshold for clearance with minimal Customs intervention, based on established risk parameters,” the Authority said in a statement.
KRA said the previous minimum yield had last been reviewed during the 2022/23 financial year. Since then, changes in exchange rates, freight costs and national and East African Community tax laws have altered the trading environment, prompting the latest review.
The Authority, however, stressed that the Sh3.2 million threshold should not be mistaken for the amount of tax payable on every consolidated container.
“It is important to emphasise that the minimum yield is not a representation of the actual tax liability,” KRA said.
The actual customs duty and taxes payable, it added, depend on factors including the nature, value and classification of the goods, in line with applicable customs valuation and tax laws.
Traders who do not wish to use the simplified clearance arrangement can request Customs to physically or otherwise verify their consignments and assess the applicable taxes based on the actual contents, correct customs value and classification of the goods.
Importers also have the option of de-consolidating their cargo into individual consignments. Under this arrangement, each importer can make a separate customs declaration and settle the taxes applicable to their own shipment.
“A trader may opt out of the simplified trade facilitation arrangement and request Customs to verify their container and determine the applicable taxes based on the actual contents, their correct Customs value and proper classification.
“Alternatively, traders may opt to de-consolidate cargo into individual consignee parcels or consignments, allowing the respective importers to make individual declarations and pay the requisite taxes directly to KRA based on their goods,” the statement adds.
KRA said it remains committed to supporting cargo consolidation, which plays an important role in facilitating trade for small-scale importers.
The Authority added it would continue strengthening controls to prevent the misuse of customs procedures and safeguard government revenue.
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