President William Ruto has announced a new framework for consolidated cargo that will lower the applicable benchmark from Sh2.5 million to Sh2 million, following concerns raised by traders over taxation, clearance and handling of consolidated imports.
In an official press release shared on President Ruto’s official Twitter account on Thursday, September 3, 2026, the President held talks with representatives of traders and other stakeholders in the consolidated cargo sector following disagreements with the Kenya Revenue Authority (KRA) over the applicable benchmark, which traders said had increased the cost of doing business.
“Following the consultations, the Government and traders have reached an agreement to resolve the outstanding issues while strengthening compliance, transparency and accountability in the consolidated cargo sector,” the statement reads.
Under the agreement, KRA will reduce the benchmark for general consolidated cargo from Sh.2.5 million to Sh.2 million. However, existing rates for ready-made garments, footwear and fabrics will remain unchanged, while the newly negotiated rates for air cargo will continue to apply.
The new framework will also introduce an exclusion list of goods that will not qualify for clearance under the general consolidated cargo arrangement. KRA will develop and publish the list based on the value and nature of goods, applicable specific tax rates, excisable goods and other customs and revenue considerations.
The Government says the exclusion list will give traders and cargo consolidators greater certainty on which goods qualify for consolidation while ensuring the framework is applied consistently and transparently.
The agreement will also require all cargo consolidators to undergo fresh vetting and registration by KRA. Consolidators will be required to submit comprehensive lists of individual traders and importers whose goods they handle.
The deadline for completing the registration, vetting and submission of the required trader disclosures has been set for October 15, 2026.
“As part of measures agreed between the Government and traders, the Advance Cargo Declaration requirement will be removed to streamline cargo clearance and facilitate legitimate trade,” the statement states,
The Government will also facilitate the establishment and operation of designated de-consolidation centres in Nairobi and Mombasa. The centres are expected to enable consolidated cargo to be separated efficiently and transparently for individual traders while improving cargo handling and clearance.
The measures come after protests and concerns over the increase in the consolidated cargo benchmark from Sh2.5 million to Sh3.2 million, with traders raising concerns about the impact of the higher costs on small and medium-sized businesses. The new agreement seeks to address the concerns while strengthening compliance in the sector.
The agreement further includes measures aimed at reducing the cost of moving cargo, including a reduction in Kenya Railways transport fees from Sh58,000 to Sh10,000, while President Ruto has also pushed for small-scale businesses such as hawking to be reserved for Kenyans. Traders have welcomed the measures as important support for their operations.
