Kenya: KNCCI welcomes one-month postponement of consolidated freight tax hike

In Kenya, the Kenya Revenue Authority (KRA) was set to significantly raise the customs reference value applied to consolidated freight, a common practice among small importers who pool their containers to reduce logistics costs. This increase, announced amid persistent budgetary pressure on the Kenyan state, worried traders already marked by several years of contested tax reforms, notably during the mobilizations surrounding the Finance Bill. According to Capital FM, the Kenya National Chamber of Commerce and Industry (KNCCI) welcomed a compromise reached with the KRA: the customs reference value for consolidated freight will now increase progressively rather than abruptly, with a one-month postponement of the new scales' entry into force, giving importers more time to adjust. For small Kenyan traders, often dependent on group imports from Asia or the Gulf, this delay reduces the risk of an immediate shock on margins and resale prices. For the KRA, the challenge remains to secure customs revenue in a country where widening the tax base remains a priority. This arbitration illustrates the recurring difficulty for East African tax authorities in reconciling budgetary objectives with the sustainability of the informal and semi-formal commercial fabric, which is sensitive to customs cost variations.