Ruto's cargo fee cut pressures Kenya Revenue Authority

President William Ruto ordered Kenya's customs minimum charge for consolidated containerized cargo lowered from Sh3.2 million to Sh2 million, creating a fresh challenge for the Kenya Revenue Authority (KRA) under pressure to boost collections. The directive, issued Wednesday, reverses KRA's recent upward review and falls below the Sh2.5 million benchmark used for six years, prompting small trader protests. Insiders say customs collections, a key revenue driver, will face setbacks as projections already factored in the higher rate. Customs generated Sh988.8 billion in 2025/26, exceeding targets, partly due to a per-transaction charging shift since March 2023. KRA officials met Thursday to assess the impact, days after defending the Sh3.2 million valuation based on freight, exchange rate, and regional factors.