Date: August 30, 2026
Reporter: Kim White
Kenyan police fired tear gas on Friday to disperse small-scale traders protesting against a sharp increase in import duties, as hundreds of businesses closed across central Nairobi in a demonstration against a new customs valuation policy that traders say threatens their livelihoods.
The protests followed a decision by the Kenya Revenue Authority (KRA) to increase the minimum customs benchmark for consolidated 40-foot containers from 2.5 million Kenyan shillings to 3.2 million shillings, equivalent to approximately $24,700. The new benchmark took effect on August 20 and has triggered anger among traders who depend on consolidated shipments to keep the cost of importing merchandise manageable.
A Reuters witness saw police officers use tear gas to disperse demonstrators in downtown Nairobi as traders gathered to express their opposition to the new customs requirements. Protesters marched through parts of the city, chanting and carrying signs demanding that the government reconsider the increase.
The demonstrations resulted in widespread closures across central Nairobi, with hundreds of businesses shutting their doors. Some traders closed their shops specifically to participate in the protest, while others said they were concerned about their safety as police moved to disperse demonstrators.
Muturi Kariuki, one of the traders participating in the demonstrations, said the protesters were defending their ability to earn a living and build their future in Kenya. The traders argue that the new customs valuation will substantially increase the amount they have to pay to clear imported goods, making it more difficult for small businesses to remain profitable.
The protest was also supported by members of the Nyamakima business community, a major trading area in central Nairobi. Benson Gatitu, vice chairman of the Nyamakima Business Community, said traders were protesting because the government had increased the tariff applied to imported goods. He described the increase from the previous 2.5 million-shilling benchmark as roughly a 30% rise.
The Kenya Revenue Authority has defended the policy, saying the higher customs benchmark is intended to address under-declaration and undervaluation of imported goods. According to the authority, some importers have been declaring goods at artificially low values, creating an unfair advantage over businesses that comply with customs regulations and placing local manufacturers at a disadvantage.
KRA has emphasized that the new 3.2 million-shilling figure is a minimum reference point rather than a fixed valuation that applies automatically to every container. Importers whose goods are worth more than the benchmark are required to declare their actual value and pay the applicable customs duties.
Despite that explanation, traders say the policy will make importing goods more expensive, particularly for smaller businesses that rely on consolidated shipments to share transportation and clearing costs. Many small-scale traders argue that the additional financial burden could ultimately be passed on to consumers through higher prices.
The dispute comes at a difficult economic time for many Kenyan businesses, which are already dealing with rising operating expenses and pressure on household purchasing power. Traders say additional customs costs could reduce their profit margins and force some businesses to reduce their imports, increase prices or close altogether.
The demonstrations also highlight broader tensions between Kenya's government and sections of the country's small-business community over taxation and economic policy. Traders have repeatedly called for policies that support entrepreneurship and protect smaller enterprises from what they consider excessive financial burdens.
Police did not immediately respond to requests for comment regarding the use of tear gas against the demonstrators. The lack of an immediate official explanation left protesters and business owners demanding greater clarity about how the authorities intended to manage the demonstrations.
The unrest caused disruptions in parts of Nairobi's central business district, where traders form an important part of the city's commercial economy. The closure of shops reduced normal business activity as demonstrators sought to draw the government's attention to their concerns.
For traders, the issue is not simply the amount of customs duty charged on individual shipments but the potential effect of the new benchmark on the entire supply chain. Many small businesses import clothing, electronics, household goods and other merchandise through consolidated containers, allowing several traders to share shipping and clearing expenses.
An increase in the customs valuation can therefore affect multiple businesses simultaneously, particularly those operating with limited capital and narrow profit margins.
The government, however, maintains that stronger customs enforcement is necessary to ensure fairness within the import market. By preventing the undervaluation of goods, authorities argue, compliant businesses and domestic manufacturers can compete on a more level playing field.
The disagreement between the government and traders is now likely to continue as business groups seek clarification and potentially push for changes to the policy.
The Nairobi protests also demonstrate the delicate balance facing the Kenyan government as it seeks to increase revenue and strengthen tax administration without placing excessive pressure on small businesses and consumers.
As police moved to disperse demonstrators on Friday, the confrontation underscored the growing frustration among traders who believe the new import rules could threaten their ability to operate. For the government, the challenge will be to enforce customs regulations while addressing concerns from thousands of small businesses that depend on imported goods for their livelihoods.
With hundreds of shops already closed and traders demanding a review of the new customs benchmark, pressure is likely to remain on Kenyan authorities to find a solution that protects government revenue while preventing additional costs from pushing small-scale businesses further into financial difficulty.