Nairobi — Small-scale traders in Nairobi's Kamukunji, Gikomba and Nyamakima markets have threatened to shut their businesses nationwide on Friday, August 28, in protest over a new Kenya Revenue Authority (KRA) customs valuation benchmark.

The traders are opposed to the increase in the minimum benchmark for a 40-foot container of consolidated cargo from Sh2.5 million to Sh3.2 million, effective August 20.

The 28 percent increase adds Sh700,000 to the benchmark used to assess consolidated imports, raising concerns among traders who rely on shared containers to bring in merchandise, particularly from China.

Traders say the higher benchmark will increase their import costs and further squeeze profit margins, forcing some businesses to raise prices or reduce their operations.

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A Kamukunji trader who has operated in the market for 15 years said the previous benchmark was already putting pressure on small businesses.

"I have been a trader at Kamkunji for 15 years and we have been doing business well. This year we were told that to ship a container from China we will be paying Sh3.2 million," he said.

Another trader called for government intervention, saying the additional cost would leave businesses with little room to make a profit.

"If they add the Sh700,000 there is no profit we will make. We are asking the relevant government agencies to look into the matter," the trader said.

The traders argue that the increase will disproportionately affect micro, small and medium enterprises that operate with limited working capital and depend on predictable import costs.

The protests come as KRA seeks to strengthen customs valuation and prevent the under-declaration and misclassification of imported goods.

KRA has said the new Sh3.2 million figure is a minimum reference point and not a flat valuation imposed on every consolidated container. Importers are still required to declare the actual value of their goods and pay the applicable taxes.