Tax applicable benchmark for general consolidated cargo has been reduced from KSh2.5 million per container to KSh2 million, President William Samoei Ruto has announced.

However, the President explained, existing rates for ready-made garments, footwear and fabrics will remain unchanged, while the newly negotiated rates for air cargo have not been affected.

He made the remarks when he held talks with representatives of traders and stakeholders in the consolidated cargo sector at State House Nairobi on Wednesday.

He said the Advance Cargo Manifest requirement will be removed to further streamline the clearance of consolidated cargo and facilitate legitimate trade.

“We are going to reduce the applicable benchmark for general consolidated cargo from KSh2.5 million to KSh2 million on condition that there will be no goods of high value,” he said.

The meeting follows concerns over taxation, clearance and handling of consolidated imports.

He said the agreement with traders and other stakeholders will be implemented once the Kenya Revenue Authority (KRA) develops and publishes an exclusion list of goods that will not qualify for clearance under the general consolidated cargo framework.

“The exclusion list will be informed by the value and nature of the goods, specific tax rates, excisable goods and other relevant Customs and revenue considerations,” the President pointed out.

He said this move will provide traders and consolidators with certainty on which goods qualify for consolidation and ensure that the new framework is applied consistently and transparently.

“All cargo consolidators will be vetted and registered afresh by KRA and will be required to submit a comprehensive list of the individual traders and importers whose goods they consolidate,” President Ruto directed.

The President’s intervention follows recent disagreements between traders and KRA over the applicable benchmark for consolidated cargo. This had raised concerns among traders about the rising cost of doing business and its impact on thousands of small and medium enterprises.

Following the consultations, the Government and traders have reached an agreement to resolve the outstanding issues, strengthening compliance, transparency and accountability in the consolidated cargo sector.

A statement on the resolutions agreed on at the meeting was read by Industry Principal Secretary Juma Mukhwana and said in part: “The deadline for the completion of registration, vetting, and submission of the required trader disclosures shall be 15 October, 2026.”

President Ruto said the Government will facilitate the establishment and operation of designated de-consolidation centres in Nairobi and Mombasa.

The centres will enable consolidated cargo to be separated efficiently and transparently for individual traders, improve cargo handling and clearance, and reduce unnecessary logistical and administrative costs.

As an immediate intervention to lower the cost of moving goods, Kenya Railways will reduce the charge for transporting cargo from the Inland Container Depot (ICD) to the Bomaline De-Consolidation Centre in Nairobi from KSh58,000 to KSh10,000.

Additionally, the Government will amend the relevant law to reserve retail trade and specified lower-level jobs for Kenyans, while clearly defining areas for foreign participation.

Foreign investment that brings capital, technology, value addition and quality jobs will continue to be encouraged.

The National Government will work with counties to create a conducive business environment for traders, taking advantage of the County Aggregation and Industrial Parks (CAIPs) programme while protecting legitimate business from unnecessary harassment, intimidation and disruption.

A multi-stakeholder committee chaired by Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui will be constituted, bringing together KRA, relevant Government agencies, traders, consolidators and other key stakeholders.

The committee will oversee implementation of the agreed measures, address emerging issues and report quarterly to the President.

The President said the Government recognises traders, importers, manufacturers, logistics operators and small and medium enterprises as essential pillars of the economy.

“The agreement reached today establishes a new partnership based on consultation, predictability, compliance and mutual responsibility,” he said.

Resolutions at the meeting further noted that traders and consolidators will comply with Customs and tax requirements and operate within the agreed framework.

In turn, the Government will continue simplifying trade procedures, lowering costs, improving infrastructure and creating an enabling environment for legitimate businesses to grow.

Others present at the meeting were the KRA Commissioner-General Adan Mohamed and National Assembly Leader Kimani Ichung’wa.

                                                                                                                               APERIT FM, HII NI YETU