Nairobi, September 2- President William Ruto’s administration has reached an agreement with traders to reduce the valuation benchmark for general consolidated cargo from Sh2.5 million to Sh2 million.
The agreement was reached after consultations between the President, traders and stakeholders in the consolidated cargo sector, following concerns over rising taxation, customs clearance charges and the increasing cost of doing business.
Under the new arrangement, the Kenya Revenue Authority (KRA) will apply the Sh2 million benchmark to general consolidated cargo. However, existing rates for ready-made clothes, footwear and fabrics will remain unchanged, while the recently negotiated rates for air cargo will continue to apply.
The government will also scrap the Advance Cargo Declaration requirement as part of efforts to make the clearance process easier for legitimate traders.
KRA has been directed to prepare and publish a list of goods that will not qualify under the general consolidated cargo arrangement. The list will consider factors such as the value and nature of the goods, applicable taxes and excise requirements.
All cargo consolidators will also undergo fresh vetting and registration. They will be required to submit details of the individual traders and importers whose goods they handle, with the exercise expected to be completed by October 15, 2026.
In another major relief for traders, Kenya Railways will reduce the cost of moving cargo from the Inland Container Depot to the Bomaline De-consolidation Centre from Sh58,000 to Sh10,000. The change represents a Sh48,000 reduction and takes effect immediately.
The government will also facilitate designated de-consolidation centres in Nairobi and Mombasa to improve the separation and handling of imported goods while reducing logistical and administrative costs.
The agreement further addresses the participation of foreign nationals in Kenya’s economy. The government plans to strengthen laws reserving retail trade and certain lower-level jobs for Kenyans, while continuing to welcome foreign investment that brings capital, technology, value addition and employment opportunities.
A multi-agency committee chaired by the Cabinet Secretary for Investments, Trade and Industry will oversee implementation of the agreement. The committee will include KRA, government agencies, traders, consolidators and other stakeholders and will submit quarterly progress reports to President Ruto.
The government said the agreement is intended to create a more predictable business environment while balancing lower costs for traders with stronger compliance, transparency and accountability in the cargo sector.
