Government Reverses Import Duty Increase After Trader Pressure

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Government Reverses Import Duty Increase After Trader Pressure

The government has reversed its decision to increase import duty from Sh2.5 million to Sh3 million per container, following pressure from traders who expressed concerns about the adverse impact on their businesses. The reversal came after a meeting between traders from 10 Nairobi markets and the Ministry of Trade and Investments.

During the meeting, traders raised concerns about harassment by officials from the Kenya Bureau of Statistics (KEBS), Anti-Counterfeit Authority (ACA), and the Kenya Revenue Authority (KRA) regarding taxation, counterfeits, and import and export rebates. The ministry responded by proposing a fixed benchmarking fee of Sh2.5 million for all containers at the port, aiming to standardize costs and enhance transparency.

Additionally, the ministry announced that all seized goods would be released within two weeks upon verification and clearance by ACA. Deputy President Rigathi Gachagua, who attended the meeting, stated that KRA would negotiate with shipping lines and the Kenya Ports Authority (KPA) to expedite the release of goods that had been held for weeks.

To address the issue of double inspection of goods by ACA and KEBS, the ministry proposed issuing traders with a single certificate of conformity and compliance from both agencies. The ministry also announced the rotation of all ACA officers to maintain the integrity of inspections and enforcement measures.

The affected traders primarily deal in electronics, second-hand clothes, motorcycle spare parts, textiles, stationery, computer and ICT accessories, and clothing.