Lead image for Why traders are protesting new Sh3.2m KRA container tax.
Small-scale traders are planning weekly Friday protests after the Kenya Revenue Authority raised the benchmark tax on consolidated imports by 28 per cent, warning the increase will squeeze thin margins and raise prices.
The traders, under the Micro, Small and Medium Enterprises (MSME) Alliance of Kenya, want KRA to suspend the new rates and hold consultations with businesses. KRA raised the benchmark for a 40-foot container from Sh2.5 million to Sh3.2 million on August 20, saying the figure is a minimum reference point for simplified clearance rather than a flat valuation for every consignment.
The authority says traders can seek verification where the benchmark exceeds the actual value of their goods. Containers containing goods worth more than the benchmark will be subjected to the applicable customs valuation and tariff treatment.
But traders say the Sh700,000 increase will make imports more expensive in a difficult business environment where many cannot pass additional costs to consumers.
“We write to categorically reject the unilateral tax directive,” the lobby said in a petition presented to KRA on Friday, describing the increases as a threat to micro-importers, wholesale markets and retail traders.
