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Kenya police fire tear gas to disperse traders protesting import duty hike
The Kenya Revenue Authority says the higher benchmark targets under-declared imports, while traders say it will raise clearing costs for small businesses.
On Friday, Nairobi police fired tear gas to disperse traders protesting a new Kenya Revenue Authority import duty hike. Hundreds of businesses across the central business district closed as demonstrations brought parts of the capital to a standstill.
The Kenya Revenue Authority raised the minimum customs benchmark for a consolidated 40-foot container to 3.2 million shillings from 2.5 million shillings . This 28 percent increase aims to curb under-declaration and undervaluation of imported goods, the authority says.
Traders argue the higher benchmark will increase importing costs and pressure narrow profit margins, potentially forcing them to raise retail prices. "We are standing for our citizenship and our right to do business," demonstrator Muturi Kariuki said.
Rejecting claims that the new benchmark is a fixed tax, the authority described it as a risk-management tool for simplified clearance. Meanwhile, protesters marched through the capital hoping to present a memorandum of grievances to the KRA commissioner.
Demonstrations come amid broader frustration regarding Kenya's rising cost of living and deep-seated mistrust in the government. Reporting for Al Jazeera, Malcolm Webb noted a widespread perception among citizens that corruption is worse than ever.