Police used tear gas to disperse small-scale traders who were marching towards the Kenya Revenue Authority (KRA) offices at Times Tower in Nairobi on Friday, August 28.
The traders had gathered in the city centre to protest KRA’s decision to increase the minimum customs benchmark for general consolidated cargo from KSh2.5 million to KSh3.2 million.
The new benchmark, which took effect on August 20, represents a KSh700,000 increase and has triggered strong opposition from small-scale importers.
The traders began their march through Nairobi’s CBD as they sought to deliver their grievances to KRA officials. The demonstration disrupted movement along several roads as the protesters headed towards Times Tower.
Police later intervened and fired tear gas to disperse the demonstrators, bringing the march to a halt.
Several businesses in parts of the CBD remained closed as traders joined the protest or stayed away due to the disruption.
The traders argue that the new customs benchmark will increase the cost of importing goods and put additional pressure on businesses that already operate on tight profit margins.
They have demanded that the government reverse the increase and restore the previous KSh2.5 million benchmark.
KRA, however, has defended the adjustment, explaining that the KSh3.2 million figure is a minimum reference point used in the simplified clearance of consolidated cargo and is not a flat tax charged to every container.
The authority says the actual tax payable depends on the type, value and classification of goods in a shipment.
KRA has also maintained that the new benchmark is intended to address undervaluation and under-declaration of imported goods while protecting compliant businesses.
The protests come amid growing tension between traders and the tax authority, with traders warning that they will continue pushing for the government to reconsider the new customs valuation rules.