Kenya Government slashes rail transport costs and lowers the cargo benchmark following talks with importers….reports Africa Daily News Desk
Kenya’s government has reached an agreement with traders and stakeholders in the consolidated cargo sector aimed at reducing business costs, easing cargo clearance procedures and addressing concerns over taxation and handling of imports.
The agreement followed consultations involving President William Ruto, traders and other stakeholders after disagreements emerged between importers and the Kenya Revenue Authority (KRA) over the benchmark applied to consolidated cargo.
Under the new framework, the KRA will reduce the applicable benchmark for general consolidated cargo from KSh2.5 million to KSh2 million. Existing rates for ready-made garments, footwear and fabrics will remain unchanged, while newly negotiated rates for air cargo will continue to apply.
As an immediate measure to lower logistics costs, Kenya Railways will also cut charges for transporting cargo from Inland Container Depots (ICDs) to the Bomaline De-consolidation Centre from KSh58,000 to KSh10,000.
The government will also remove the Advance Cargo Declaration requirement in an effort to streamline cargo clearance and facilitate legitimate trade.
Under the agreement, the KRA will develop and publish an exclusion list identifying goods that will not qualify for clearance under the general consolidated cargo framework. The list will take into account the value and nature of goods, specific tax rates, excisable products and other customs considerations.
All cargo consolidators will meanwhile be vetted and registered afresh by the KRA and will be required to submit comprehensive lists of the traders and importers whose goods they consolidate. The registration and vetting process must be completed by October 15, 2026.
The government will facilitate the establishment of designated de-consolidation centres in Nairobi and Mombasa to enable consolidated cargo to be separated more efficiently, improve handling and clearance, and reduce administrative and logistical costs.
Kenya also said it would expand legislation to reserve retail trade and specified lower-level jobs for citizens, while continuing to encourage foreign investment that brings capital, technology, value addition and quality employment.
A multi-stakeholder committee chaired by the Cabinet Secretary for Investments, Trade and Industry will oversee implementation of the agreed measures and report quarterly to the President.
The government said the agreement marked a new partnership with traders, importers, manufacturers, logistics operators and small and medium-sized enterprises, based on consultation, predictability, compliance and mutual responsibility.
