The Kenya Revenue Authority (KRA) and the Kenya National Chamber of Commerce and Industry (KNCCI) have announced revised import duty regulations affecting consolidated cargo imports.
In a joint statement released on July 28, 2026, the two bodies confirmed that the current customs benchmark value of Ksh2.5 million will remain effective until August 20, 2026. Starting August 21, 2026, a new threshold of Ksh3.2 million will be implemented.
Key points of the agreement include:
- Retention of the existing benchmark value of Ksh2.5 million until August 20, 2026.
- Introduction of a higher benchmark of Ksh3.2 million from August 21, 2026.
- Waiver of storage charges for traders whose cargo incurred fees after the initial July 9, 2026 directive.
- Price benchmarks will be fixed for a two-year period to ensure business predictability.
- Importers may request valuation reviews if they believe their goods qualify for lower taxes.
- Ongoing consultations by Customs on benchmarks for other low-value goods.
The KNCCI urged importers to expedite clearing their cargo before the August 20 deadline to benefit from the current benchmark and waived storage fees. The chamber emphasized the importance of fair tax compliance to support national development, highlighting that the new framework aims to balance revenue collection with trade facilitation.
Background on the Benchmark Dispute
The dispute arose following KRA's introduction of a minimum customs value for consolidated imports, a practice commonly used by small-scale traders who share container space. This measure was intended to combat undervaluation and reduce tax evasion.
However, the July 9, 2026 directive led to concerns among importers and clearing agents about increased taxable values, resulting in higher duties and accumulation of storage charges due to delayed cargo clearance.
The recent agreement seeks to address these issues by providing clarity, fairness, and a more predictable business environment for traders.
