The Kenya Revenue Authority (KRA) and key import stakeholders have reached a consensus to maintain the existing benchmark customs value for consolidated cargo at Sh2.5 million until August 20, 2026. This agreement follows concerns raised over recent changes in import valuation rules.
The accord was finalized during a joint meeting held on July 20, which included the Kenya National Chamber of Commerce and Industry (KNCCI), cargo consolidators, clearing agents, and other relevant parties. It aims to provide clarity and stability for businesses while ensuring continued tax compliance.
Key Points of the Agreement
- The current Sh2.5 million benchmark will remain effective until August 20, 2026.
- From August 21, a new benchmark value of Sh3.2 million will be introduced and held steady for two years to aid in business planning.
- KRA has agreed to waive all storage charges accrued after July 9, alleviating financial pressure on importers affected by the dispute.
- Importers disputing their tax assessments can request customs verification and valuation for potentially lower taxes.
- Ongoing consultations will address benchmark values for other categories of low-value goods.
- Cargo consolidators will focus on serving micro, small, and medium-sized enterprises (MSMEs), discouraging facilitation for large businesses that should import directly.
- Consolidators also committed to enhancing compliance and supporting customs in border control and tax enforcement.
KNCCI described the resolution as a positive step toward creating a fair, predictable, and supportive business environment. Importers are encouraged to clear their cargo under the current benchmark and benefit from waived storage fees before the new rates come into effect.
This development is expected to ease tensions between the tax authority and the business community while providing a structured path for implementing customs valuation reforms without disrupting trade.
