President William Ruto has ordered a review of the Ksh.3.2 million customs clearance charge imposed on consolidated cargo following protests from small-scale traders.
Ruto said high-value goods should be treated differently from ordinary consignments, while maintaining that Kenyans must continue paying taxes to support government operations.
Speaking during a meeting with Micro, Small and Medium Enterprises (MSME) traders at State House, Nairobi, on Wednesday, the President said the government was willing to address traders’ concerns over the increased customs clearance threshold.
Ruto Proposes Lower Charge for Ordinary Goods
The Head of State directed that containers carrying ordinary goods should continue to attract a Ksh.2 million charge, while consignments containing high-value goods should undergo further assessment based on the value of the items inside.
“Kama hakuna high-value items, tupunguze bei mpaka Ksh.2 million,” he stated.
“Kama kuna bidhaa za bei ghali zitolewe kwanza. Container ambayo haina high-value items tuendelee na bei ya zamani. Ones with high-value items lazima ijulikane ni nini.”
Ruto questioned whether a uniform customs clearance threshold should apply to containers carrying goods whose values differ significantly.
“Mnataka pesa irudishwe ifike either Ksh.2.5 million ama Ksh.2 million? Nataka niwaulize nyinyi, mnajua vile pesa ya serikali inapatikana ndio tuweze kulipa walimu, askari, all these things we’re doing?” Ruto posed.
President Defends Need for Tax Revenue
Ruto said the government needed traders and other Kenyans to contribute taxes to finance public services, including the payment of teachers and security officers.
“Tukubali kwanza lazima sisi wote tuchangie. Shida ambayo iko hapo ndani, hawa watu wa KRA, wanasema Ksh.2.5 million. Assumption ni bidhaa ya container ni around Ksh.6 million, hence ushuru ni Ksh.2.5 million. Lakini kuna wakati mwingine bidhaa ni Ksh.20 million, anafaa kulipa kweli Ksh.2.5 million? Niko tayari kufanya vile mmesema lakini pia nataka tukubaliane.”
The President further directed the Kenya Revenue Authority (KRA) to provide traders with a list of high-value items that would not qualify for the consolidation arrangement.
Ruto Orders Register of Consolidators
Ruto also called for greater transparency in the cargo consolidation business, directing KRA to establish a proper register of consolidating agents and the traders whose goods they handle.
“Pia tunataka kujua consolidators ni akina nani. Bwana KRA, get a proper list of consolidators and also for consolidators, know the traders who you’re consolidating for to be accountable and transparent,” Ruto stated.
The move is aimed at improving accountability within the consolidation system and ensuring authorities can identify both the agents handling consolidated cargo and the traders benefiting from the arrangement.
Kenya Railways Charges to Be Reduced
In another concession to traders, Ruto said the government had directed Kenya Railways to reduce charges imposed on containers undergoing deconsolidation when high-value goods are discovered.
“We have asked Kenya Railways that for those doing deconsolidation, if you’re found with high-value items, to reduce the amount per container from Ksh.55,000 or Ksh.58,000 to Ksh.10,000,” Ruto stated.
The proposed changes are expected to ease the financial burden on small-scale traders while allowing the government to maintain mechanisms for collecting taxes on high-value imports.
