The Kenya Revenue Authority (KRA) has clarified the legal requirements for cargo clearance after clearing agents, motor vehicle dealers, and other stakeholders raised concerns.
In a statement on September 7, the Commissioner, Customs & Border Control, said the requirement for an export declaration the clear imported goods is anchored in Section 23B of the Tax Procedures Act.
The Authority said it is mandated to implement and administer laws enacted by Parliament while facilitating legitimate trade and business operations.
“KRA wishes to clarify that the requirements for accurate declaration in the clearance of imported goods are anchored in law under Section 23B of the Tax Procedures Act. As a statutory institution, KRA is mandated to implement and administer legislation enacted by Parliament, while at the same time facilitating legitimate trade and law compliance,” the statement read in part.
Vehicle Valuation Matter
The authority said it is working with affected stakeholders to promote compliance while minimising unnecessary disruption to legitimate business activities.
On motor vehicle valuation, KRA said the matter is currently before the court and therefore declined to comment on the merits of the valuation methodology.
Also Read: Businesses in Nairobi to Pay New Tariffs as KRA Changes Cargo System
The Authority cited the principle of sub judice and said it would await the direction and determination of the court.
It also said it will continue engaging freight forwarders, clearing agents, motor vehicle dealers and other stakeholders to address operational challenges affecting cargo clearance and trade.
“KRA remains committed to continuous and constructive engagement with freight forwarders, clearing agents, motor vehicle dealers, and other relevant stakeholders. Through ongoing consultation and dialogue, KRA will continue to explore practical and lawful solutions to operational challenges affecting cargo clearance and trade,” the authority stated.
KRA Clarifies KSh3.2 Million Minimum Yield for Consolidated Cargo
The authority clarified the newly revised KSh3.2 million minimum yield for general consolidated cargo, effective August 21.
Also Read: KRA Introduces New Cargo System Affecting All Importers and Exporters
According to the authority, the minimum yield is not the actual tax payable by traders and does not apply as a standard fixed tax bill for small-scale traders who combine shipments in the same container.
The clarification came after small-scale traders prepared planned demonstrations and a nationwide business shutdown on August 28, 2026, over rising import costs and taxes.
In a press statement issued on August 27, 2026, KRA explained that the set KSh 3.2 million minimum yield is used to simplify the clearance of consolidated cargo.
“It is important to emphasise that the minimum yield is not a representation of the actual tax liability for the goods contained in a container. Rather, it is a risk-management reference used under the simplified clearance arrangement,” part of the statement read.
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