KRA has sharply increased the minimum customs values applied to consolidated imports, with many goods previously cleared at about Sh2.5 million per 40 foot container now being assessed at Sh3.5 million, while some categories have been pushed to Sh4 million, Sh4.5 million, Sh5 million and even Sh10 million.
The new schedule places goods such as electrical accessories, blenders, vehicle rims, toys, door locks, motorcycle parts, school bags, household items and kitchenware at a minimum value of Sh3.5 million per 40 foot container, regardless of the actual value declared by importers.
Importers, including major supermarket chains, have reportedly stopped lodging customs entries for shipments already at the port as they seek clarity on the sudden increase and its effect on taxes, storage charges and consumer prices.
This is not a small adjustment. It will raise the cost of imported goods, increase demurrage and storage charges, hurt small traders and push prices even higher for consumers who are already struggling to survive in this economy.