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UPDATE: Small Traders Association says it will stage protests EVERY FRIDAY until Kenya Revenue Authority calls them to the negotiating table regarding the upward review of the Customs Benchmark. Unbundle quoted tweets for more context.

103,675 views • 7 days ago •via X (Twitter)

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In view of the indication of protests slated for tomorrow (Aug 28th) following the upward review of the Customs Benchmark to Kes 3.2 Million (see quoted tweet), the Revenue Authority has sought to explain itself regarding this adjustment. The Commissioner Customs, Dr. Nyawanda, makes the following points: · Kes 2.5 Million has been in place for six years during which there have been significant changes in a number of variables, notably, foreign exchange, freight costs, local taxes & stays of application from a regional standpoint. Hence the need to change · The Kes 3.2 Million & the August 21st date was based on consensus between the authority & key stakeholders including umbrella bodies & it factors in all the changes that have taken place over the last six years · Stakeholders were given a one month long grace period to organise themselves around this change & that is how the August 21st effective date was arrived at · The Kes 3.2 Million is simply a benchmark & therefore there's expectation that some consolidated cargo will fall either below or above this value · Where the trader believes that the Kes 3.2 Million is not a true reflection & therefore not applicable, there will be room for verification Musings: · I wonder how this adjustment aligns with Sec122 of the East African Community Customs Management Act & more precisely the dictates of the 4th Schedule of the Act on determination of value of imported goods · One likely outcome here will be that because the Revenue Authority anticipates push back, it will persuade most taxpayers to declare & therefore unlock more visibility on customs values

Julians Amboko

148,463 views • 8 days ago

The government has back-pedalled on the revised Customs Benchmark (Kes 3.2 million) following last Friday's protests & boycott by traders. In its place, Kes 2.0 million has now been adopted as the new Customs Benchmark. The following have been agreed upon at a meeting held at State House this evening. · The Kenya Revenue Authority (KRA) will reduce the benchmark for general consolidated cargo to Kes 2.0 million from the Kes 3.2 million · Existing rates for ready made garments & footwear to remain unchanged & newly negotiated rates for air cargo to remain in place · The Advance Cargo Manifest will be done away with with immediate effect to streamline clearance of consolidated cargo · KRA to develop & publish an Exclusion List of cargo that doesn’t qualify for clearance under Consolidation. The list will be informed by the value & nature of goods, specific tax rates & other customs consideration · All Cargo Consolidators will be vetted afresh & registered by KRA with the deadline for fresh registration being Oct 15th, 2026. They will submit a comprehensive list of the individual traders & importers whose goods they consolidate · The government to establish de-consolidation cargo centres in Nairobi & Mombasa to enable cargo to be assessed transparently · Kenya Railways will reduce the charge for transporting cargo from the Inland Container Depot to the de-consolidation centre from Kes 58,000 to Kes 10,000 Traders had vowed to stage protests every Friday until the matter was addressed. Musings: · Whether Kes 2.0 million, Kes 2.5 million or Kes 3.2 million, the issue remains adherence to the 4th Schedule East African Community Customs Management Act & its guidance around valuation. Will it be possible to anchor any future adjustments on the 4th Schedule? · The Advance Cargo Manifest system was rolled out on August 3rd, 2026, it has barely finished a month in application. It has been done away with · The Advance Cargo Manifest system was further transitioning Customs in Kenya into a risk based profiling system through verification of invoices, bills of lading, & export declarations upfront. It's a delicate balance here

Julians Amboko

37,937 views • 2 days ago