Kenyan police fired tear gas Friday to disperse small-scale traders protesting in central Nairobi against a hike in import-related charges. The demonstrations followed the Kenya Revenue Authority’s decision to raise the minimum customs valuation benchmark for a 40-foot container by 28%, increasing costs for traders, officials said.
The protests erupted after the Kenya Revenue Authority (KRA) raised the minimum customs valuation benchmark for a 40-foot container of consolidated general cargo from 2.5 million shillings (about $18,000) to 3.2 million shillings, a 28% increase that effectively adds 700,000 shillings in import-related charges per container, officials and traders said. The new benchmark, which took effect around August 20–21 following consultations with industry stakeholders, is used by KRA as a minimum reference value for tax purposes and customs risk management, sources confirmed. Traders argue that the higher valuation disproportionately impacts small-scale importers, especially those dealing in goods from China packed in consolidated containers, raising their operating costs and threatening their profit margins.
On Friday, August 28, hundreds of small-scale traders closed their shops in Nairobi’s Central Business District (CBD) and marched from market areas such as Kamukunji, Nyamakima, and Gikomba toward Times Tower, the KRA headquarters, according to Reuters correspondents and local media reports.
Demonstrators carried placards, blew vuvuzelas, and chanted slogans demanding a rollback of the new 3.2 million shilling benchmark. As the protest numbers grew, they spilled into major thoroughfares including Moi Avenue, Kenyatta Avenue, and Parliament Road, disrupting traffic and pedestrian movement and effectively paralyzing sections of the CBD.
Police responded by deploying tear gas along Kenyatta Avenue and Parliament Road to block access routes to Times Tower and other government buildings, triggering running battles between officers and protesters, Reuters and eyewitness accounts confirmed. Tear gas drifted through Kamukunji, Gikomba, Nyamakima, and CBD streets, causing traders to flee and regroup, while traffic in the city center was brought to a standstill. Security officials did not provide immediate comment on the operation, but the use of tear gas aligns with previous police responses to unauthorized protests in Nairobi, according to historical records.
Traders had issued earlier warnings that they would shut down businesses and demonstrate if the KRA did not review the new import-duty-related rules. In the days preceding the protest, some traders in Kamukunji and Gikomba withheld cargo clearance and threatened a nationwide business shutdown, according to trade group statements and media reports. Organised trader groups demanded that KRA restore the previous 2.5 million shilling benchmark, warning that failure to do so would result in continued demonstrations and business closures.
KRA officials clarified that the 3.2 million shilling figure is a customs risk-management benchmark, not a flat tax charge applicable to every consolidated container, and that actual tax liability depends on the declared value, classification, and nature of goods, according to official statements. The authority also noted that traders who disagree with the simplified benchmark can request physical verification of their cargo or de-consolidate shipments to file separate declarations and pay tax on individual goods. KRA described the revised benchmark as fixed for two years from late August 2026, aiming to provide predictability and curb under-declaration of cargo values.
Business groups have warned that the benchmark increase could lead to job losses, reduce the supply of low-cost consumer goods, and place additional strain on micro and small enterprises already facing economic challenges. Traders framed the issue as part of a broader struggle against rising taxes, levies, and administrative charges that cumulatively threaten the sustainability of the micro, small, and medium enterprise (MSME) sector, according to statements from trade associations.
The August 28 confrontation fits into a broader pattern of Kenyan police using tear gas and other dispersal tactics in response to protests over tax and duty increases. In June 2024, for example, police used tear gas and water cannons to disperse protesters near parliament opposing planned tax hikes, with hundreds arrested, illustrating an established approach to fiscal-policy demonstrations. The latest protests occurred amid ongoing debates over government revenue measures and high inflation, which have heightened public sensitivity to changes in tax and customs policy. Traders and commentators warn that repeated clashes and heavy-handed policing risk deepening mistrust between small businesses and the state.
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