Business activities were disrupted in parts of Nairobi after traders took to the streets to protest changes to customs valuation rules introduced by the Kenya Revenue Authority (KRA).
Several businesses in Nairobi’s central business district remained closed as traders protested against what they said would increase the cost of importing goods and make it harder for small businesses to survive.
The demonstrations centred on a new customs valuation benchmark that has raised concerns among importers, particularly those dealing with consolidated cargo.
The KRA has explained that the new KSh.3.2 million figure is a minimum customs benchmark for a consolidated 40-foot container and is not itself a tax payable by every importer.
The authority says the changes are intended to address the under-declaration and undervaluation of imported goods, practices that it argues disadvantage compliant businesses and local manufacturers.
However, traders have raised concerns that the new system could increase their operating costs and ultimately force them to raise prices for consumers.
The protests in Nairobi saw police officers use tear gas to disperse demonstrators as traders attempted to march towards the KRA offices at Times Tower.
The dispute has renewed debate over the balance between government efforts to increase revenue and the need to protect small businesses.
Traders argue that many small-scale importers operate on relatively narrow profit margins and could struggle to absorb higher costs.
On the other hand, authorities maintain that stronger customs controls are necessary to prevent tax evasion and protect businesses that comply with the law.
The controversy is likely to remain an important economic issue as traders seek further clarification from KRA and the government over how the new customs rules will affect their businesses.
