Small-scale traders took to the streets of Nairobi on Friday, August 28, protesting against a new customs benchmark introduced by the Kenya Revenue Authority (KRA), which they say will increase the cost of doing business.
The demonstrations started in Kamukunji before traders moved along Moi Avenue towards the KRA offices at Time Tower. The protests disrupted normal business activities in parts of the Central Business District as traders marched through the streets carrying placards and blowing vuvuzelas.
The situation later became tense as police officers moved to disperse the protesters along Parliament Road and Kenyatta Avenue. Officers lobbed tear gas at groups of traders, briefly affecting movement and transport along the two roads.
Several businesses in the city centre remained closed as traders joined the demonstrations to raise concerns over the latest tax measures. The traders said the changes could put more pressure on small businesses that are already dealing with increased operating expenses.
At the centre of their concerns is KRA’s decision to raise the customs minimum benchmark for general containerised consolidated cargo from Ksh2.5 million to Ksh3.2 million.
The new benchmark took effect on August 20, 2026, representing an increase of Ksh700,000. Traders argue that the higher figure could raise their tax obligations and make it more expensive to import goods.
They are calling on the government to reconsider the adjustment, saying the additional costs could affect their businesses and eventually lead to higher prices for consumers.
Some traders also fear that the new benchmark could reduce their profits as they struggle to absorb the additional costs. They want the government and KRA to engage with the business community before implementing measures that could have a direct impact on small-scale importers.
KRA, however, has defended the adjustment, saying it was necessary to deal with challenges in customs valuation and prevent revenue losses.
In a statement issued on Thursday, August 27, the tax authority said the review was intended to address practices such as undervaluation, under-declaration and misdescription of goods. It also cited revenue leakages as one of the issues the adjustment seeks to address.
According to KRA, the review considered changes in economic conditions and freight charges, which had made it necessary to adjust the existing benchmark.
The disagreement has now placed small-scale traders and the tax authority on opposite sides of the debate. While traders want the new benchmark reviewed, KRA maintains that the adjustment is part of efforts to improve customs valuation and protect government revenue.
The Friday demonstrations brought renewed attention to the concerns of small businesses over the rising cost of importing and operating in Kenya.
