Kenya Traders Protest Over Import Duty Hike

Police fired tear gas to disperse small-scale traders protesting against a new import duty hike in Kenya, while hundreds of businesses closed in central Nairobi, Reuters reported on Friday.

The Kenya Revenue Authority (KRA) introduced the higher duty on August 20, saying it was aimed at tackling the under-declaration and undervaluation of imported goods, which it said disadvantaged compliant businesses and local manufacturers.

Traders said the increase would raise the cost of clearing goods and hurt small businesses that rely on consolidated shipments to reduce import costs.

The new policy raises the minimum customs benchmark for a consolidated 40-foot container to 3.2 million Kenyan shillings ($24,700), from 2.5 million shillings. KRA said the figure was only a minimum reference point and did not represent a fixed value for every container. Importers whose goods exceed the benchmark must declare their actual value and pay the applicable duties.

The demonstrations highlight concerns among small-scale traders over the impact of higher import costs on businesses that depend heavily on imported goods.

SOURCE: Reuters