Traders paralyse business in Nairobi CBD in protest over higher KRA import duty

Carrying banners, blowing vuvuzelas, and waving Kenyan flags, protesters gathered outside the landmark Kenya National Archives building along Tom Mboya Street before marching toward Times Tower, the headquarters of the tax authority.

The widespread action, organised by traders from major commercial hubs including Kamukunji, Gikomba, and Nyamakima, follows the implementation of a revised customs valuation benchmark on consolidated cargo. 

Under the new guidelines, the minimum valuation benchmark for a 40-foot container of consolidated general cargo jumped from Ksh.2.5 million to Ksh.3.2 million - a 28 percent increase amounting to an extra Ksh.700,000 per container.

For small-scale importers who share container space to bring in clothing, electronics, and household goods—primarily from China—the cost increase has hit hard. 

Traders argue that the sudden hike severely erodes their already thin profit margins, threatening to price out small enterprises and force retail price increases for ordinary consumers.

"If they add the Ksh.700,000, there is no profit we will make," noted a Kamukunji vendor during the mobilization leading up to Friday's protest. "We are asking the relevant government agencies to look into the matter."

The protests left key commercial corridors in the capital on pause. 

While public transport and major thoroughfares continued limited operation, several shops and retail outlets in the CBD remained shuttered throughout the morning out of security concerns and solidarity with the marchers.

In response to the growing unrest, the Kenya Revenue Authority clarified that the Ksh.3.2 million threshold serves as a minimum reference point for simplified customs clearance risk management, rather than a flat tax rate applied across all shipments. 

KRA stated that traders retain the option to de-consolidate their cargo and pay duties based on actual itemised declarations.

However, traders contend that detailed individual declarations are impractical for micro-importers operating on limited working capital. As crowds continued their march through the CBD, business leaders and trade associations called for immediate dialogue between government officials and small business representatives to resolve the standoff and prevent prolonged economic disruption.