Small-scale traders took to the streets of Nairobi on Friday, August 28, protesting against a new customs benchmark introduced by the Kenya Revenue Authority (KRA), which they say could increase the cost of running their businesses.
The demonstrations started in Kamukunji before the traders moved through Moi Avenue towards the KRA offices at Time Tower.
The protests affected normal activities in parts of the Central Business District as traders marched while carrying placards and using vuvuzelas to express their concerns.
As the demonstrations continued, police officers moved to disperse some of the traders along Parliament Road and Kenyatta Avenue.
Tear gas was used as officers responded to the growing protest, briefly affecting movement along the two roads.
The demonstrations also resulted in several businesses in parts of the CBD remaining closed as traders joined the protest. Transport and pedestrian movement were also affected in some areas as the traders continued their march towards Time Tower.
At the centre of the protest is KRA’s decision to raise the customs minimum benchmark for general containerised consolidated cargo from Ksh2.5 million to Ksh3.2 million.
The adjustment, which took effect on August 20, 2026, represents an increase of Ksh700,000. Traders say the change could have a direct impact on importers, particularly small-scale business owners who are already facing increased operating expenses.
According to the traders, a higher customs benchmark could result in increased tax obligations when goods are imported into the country. They fear that the additional costs could reduce their profit margins and make it more difficult for them to maintain their businesses.
Some traders also warned that increased import costs could eventually affect consumers if business owners are forced to raise the prices of goods to cover the additional expenses.
The traders are therefore calling on the government to reconsider the new benchmark and engage them on the issue.
They want authorities to take into account the challenges faced by small businesses before implementing measures that could increase their costs.
The protest comes as many small traders continue to operate in an environment where expenses such as transport, rent, wages and the cost of goods remain major concerns.
Traders argue that any additional tax burden could make it harder for some businesses to remain profitable.
KRA, however, has defended the adjustment, saying it was necessary to address challenges affecting customs valuation and protect government revenue.
In a statement issued on Thursday, August 27, the tax authority said the review was intended to address practices such as undervaluation, under-declaration and misdescription of imported goods.
It also said the move was aimed at reducing revenue leakages.KRA explained that the review considered changes in economic conditions as well as freight charges, which it said had contributed to the need for an adjustment of the customs benchmark.
The authority’s position has not eased the concerns among traders, who maintain that the higher benchmark could place additional pressure on their businesses.
For the traders, the main concern is the financial impact of the new valuation on their daily operations. They want the government and KRA to reconsider the measure or find a way of addressing revenue concerns without placing what they consider an excessive burden on small businesses.
The protests in Nairobi have therefore brought renewed attention to the wider debate over taxation and the cost of doing business, with traders seeking a balance between the government’s need to collect revenue and the ability of small businesses to survive.
