Nairobi, Kenya (Running Africa) — Kenyan police fired tear gas to disperse small-scale traders protesting higher import duties in central Nairobi, as hundreds of businesses closed amid growing opposition to new customs measures introduced by the Kenya Revenue Authority (KRA).

The protests follow an increase in the customs benchmark used for consolidated imports, which traders say will significantly raise the cost of clearing goods and threaten businesses that depend on shared container shipments.

Under the revised framework introduced on August 20, the customs benchmark for a consolidated 40-foot container increased from 2.5 million Kenyan shillings to 3.2 million shillings.

The KRA says the measure is intended to tackle the under-declaration and undervaluation of imported goods while promoting fair competition and protecting compliant businesses and local manufacturers.

Kenya Traders Protest New KRA Import Duties

Small-scale traders took to the streets of Nairobi to oppose the revised customs policy, arguing that higher clearing costs could make imported goods increasingly unaffordable for smaller businesses.

Police used tear gas to disperse demonstrators as protests disrupted commercial activity in parts of the capital.

Hundreds of businesses were closed during the demonstrations. Some traders deliberately shut their shops as part of the protest, while others remained closed because of security concerns.

The disruption highlighted growing tensions between Kenya’s tax authorities and traders who depend heavily on imported merchandise.

KRA Raises Customs Benchmark for 40-Foot Containers

At the center of the dispute is the revised customs benchmark applied to consolidated shipments.

The benchmark for a 40-foot consolidated container has increased from KSh2.5 million to KSh3.2 million, representing a KSh700,000 increase.

Consolidated containers allow multiple traders to combine smaller shipments into a single container, helping businesses distribute transportation and logistics costs.

The system is particularly important for small and medium-sized traders who may not import enough merchandise to justify paying for an entire container individually.

Traders argue that increasing the customs benchmark will raise their overall import costs and ultimately reduce profit margins.

Traders Warn Higher Import Costs Threaten Small Businesses

Protesters say the new policy could have significant consequences for businesses operating on already narrow margins.

Higher customs costs may force traders to increase retail prices, absorb additional expenses or reduce the volume of goods they import.

Small businesses that rely on consolidated shipments could be particularly exposed because keeping import and logistics costs low is central to their business model.

Traders say the changes could therefore affect not only their current earnings but also their ability to expand their businesses and maintain employment.

KRA Says New Import Rules Target Undervaluation

The Kenya Revenue Authority has defended the revised benchmark, saying it is designed to address persistent problems involving the under-declaration and undervaluation of imports.

Under-declaration occurs when the value or quantity of imported goods is reported below its actual level, potentially reducing the customs duties and taxes collected by the government.

The KRA maintains that the new benchmark provides a minimum reference value rather than simply imposing an arbitrary increase on importers.

According to the authority, stronger customs valuation standards can promote fair trade by preventing businesses that undervalue imports from gaining an unfair advantage over compliant traders.

KRA Says Policy Will Protect Kenyan Manufacturers

The tax authority has also linked the measure to efforts to protect local manufacturers.

Goods entering Kenya at artificially low declared values can create pricing pressure for domestic producers that face local production costs and tax obligations.

By strengthening customs valuation, the KRA argues that authorities can create a more level playing field between importers and Kenyan manufacturers.

For the government, the policy therefore forms part of a wider effort to improve customs compliance while protecting legitimate businesses.

Traders, however, argue that legitimate small importers could bear a disproportionate share of the additional costs.

Nairobi Protests Highlight Pressure on Kenya’s Small Traders

The demonstrations highlight the difficult balance facing Kenyan authorities between improving tax compliance and protecting small businesses from rising operating costs.

For the KRA, stronger import valuation rules are intended to tackle customs abuses and support fair competition.

For traders, however, the increase from KSh2.5 million to KSh3.2 million for a consolidated 40-foot container represents a substantial additional burden that could affect prices, profits and livelihoods.

With hundreds of businesses disrupted and police deploying tear gas in central Nairobi, the dispute has moved beyond customs policy into a broader confrontation over the cost of doing business in Kenya.

How the government and traders address those competing concerns could determine whether the protests subside or become a wider challenge to Kenya’s new import measures.