Kenyan police have fired tear gas to disperse small-scale traders protesting against an increase in import duties.
Hundreds of businesses closed in central Nairobi as traders warned that the new customs rules could raise costs and threaten their businesses.
The protests followed a decision by the Kenya Revenue Authority to increase the minimum customs valuation benchmark for consolidated 40-foot containers from $19,300 to $24,700, effective August 20.
The revenue authority said the change was designed to tackle the under-declaration and undervaluation of imported goods, which it said disadvantages businesses that comply with customs requirements and local manufacturers.
The new benchmark applies to consolidated shipments, where goods belonging to multiple importers are transported in the same container. The authority said the $24,700 figure was a minimum reference point rather than a fixed valuation for every container.
Importers whose goods are worth more than the benchmark are required to declare their actual value and pay the applicable duties.
Traders, however, said the policy would increase the cost of clearing imported goods and put additional pressure on small businesses that rely on consolidated shipments to reduce transportation and import expenses.
The protests brought parts of central Nairobi to a standstill, with hundreds of businesses shutting their doors. Some traders closed specifically to participate in the demonstrations, while others reportedly shut their businesses because of concerns about their safety.
Muturi Kariuki, one of the traders involved in the protest, told Reuters that the demonstrations were aimed at defending their ability to conduct business and build their livelihoods.
The dispute highlights the tension between Kenya’s efforts to strengthen tax and customs administration and the impact of higher import costs on small businesses.
The Kenya Revenue Authority has been seeking to improve compliance and prevent importers from declaring artificially low values for goods to reduce their tax obligations. Authorities argue that such practices undermine government revenue and place compliant businesses at a disadvantage.
For small-scale traders, however, higher customs valuations could increase working-capital requirements and ultimately raise the prices of imported goods for consumers.
The latest protest also adds to the broader economic pressure facing Kenyan businesses, which have been dealing with elevated operating costs and tighter financing conditions.
Police did not immediately respond to requests for comment on the use of tear gas.
The government now faces pressure to balance its efforts to increase customs compliance with concerns from traders who argue that the new valuation rules could undermine small businesses and increase the cost of imported goods.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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