President William Ruto has ordered a major reduction in the cost of transporting consolidated cargo, giving small-scale traders a reprieve following protests over increased import charges.
Ruto directed Kenya Railways to reduce the charge for transporting cargo from the Inland Container Depot (ICD) to the Bomaline De-consolidation Centre from KSh58,000 to KSh10,000.
The new rate takes effect immediately.
The move is expected to save traders up to KSh48,000 per container and lower the cost of importing goods.
Ruto announced the changes on Wednesday during a meeting with Micro, Small and Medium Enterprises (MSME) traders at State House, Nairobi.
The traders had protested after the Kenya Revenue Authority (KRA) raised the benchmark for consolidated cargo from KSh2.5 million to KSh3.2 million.
The protests saw businesses in parts of Nairobi close as traders demanded a review of the new charges.
Ruto also directed KRA to review the consolidated cargo arrangement and ensure high-value goods are treated differently.
“Kama hakuna high-value items, tupunguze bei mpaka KSh2 million,” Ruto said, referring to containers carrying ordinary goods.
He said goods considered high-value should first be identified and assessed separately.
The President also directed KRA to publish a clear list of goods that will not qualify for the general consolidated cargo arrangement.
The list will help traders know which goods will be subject to different tax treatment.
Ruto further ordered KRA to register all cargo consolidators and maintain a list of traders whose goods are handled by each consolidator.
“Tunataka kujua consolidators ni akina nani,” he said, calling for greater accountability and transparency in the sector.
The government will also facilitate designated de-consolidation centres in Nairobi and Mombasa to make it easier for small traders to clear their goods.
The changes come as the government seeks to address concerns raised by traders while maintaining tax compliance.
Ruto said traders must continue paying taxes but called for a system that does not unnecessarily raise the cost of doing business.