The Kenya Revenue Authority (KRA) has announced an extension of the Ksh2.5 million benchmark value for consolidated cargo imports until August 20, 2026. This move aims to provide importers with additional time to adjust before new valuation rates take effect.
Following consultations with the Kenya National Chamber of Commerce and Industry (KNCCI) on July 20, KRA revealed that starting August 21, the import threshold will increase to Ksh3.2 million. This new benchmark will replace the current figure entirely and is set to remain fixed for two years once implemented.
Key Points of the Agreement
- The Ksh2.5 million import value threshold for consolidated cargo remains valid until August 20, 2026.
- From August 21, a new threshold of Ksh3.2 million will be enforced.
- Importers can request cargo verification and valuation if they believe their shipments qualify for a lower tax bracket.
- KRA and industry stakeholders will review benchmarks for other low-value goods to ensure fairness.
- The authority encourages all traders to contribute their fair share in taxes, supporting Micro, Small, and Medium Enterprises (MSMEs) over larger shippers.
This decision follows weeks of dialogue between KRA and business representatives who expressed concerns over the initial directive's impact on trade flow and business operations. The earlier set minimum benchmark values had raised legal and economic concerns among traders, prompting the need for revisions.
Kenya's import sector includes over 9,400 active importers, with an annual import bill estimated at Ksh3.16 trillion (approximately USD 24.4 billion). Major imports include petroleum products, machinery, iron and steel, as well as essential food items such as wheat, rice, sugar, and edible oils.
The extension and subsequent adjustment of the import value threshold are expected to restore predictability in customs valuation, reduce disruptions in supply chains, and promote equitable tax compliance across the trading community.
