Police in Kenya’s capital, Nairobi, fired teargas on Friday to disperse small-scale traders, importers and their supporters protesting against increased import duties.
The demonstrators gathered in the city centre to oppose a decision by the Kenya Revenue Authority (KRA) to increase the minimum customs valuation benchmark for a 40-foot container of consolidated general cargo.
The new benchmark, which took effect on August 20, represents a 28 per cent increase and has sparked concerns among small businesses that depend on consolidated shipments to import goods.
Hundreds of shops reportedly closed as traders joined the protest, with demonstrators arguing that the higher valuation would increase the cost of imported goods and further squeeze already narrow profit margins.
Businesswoman Priscal Njuguna said the demonstration began peacefully before police intervened.
“We were walking but now the police have used teargas. They are using their power to intimidate us and we are very peaceful, we are going to fight for our rights,” she said.
Mobile phone retailer Simiyu Wanyama said business activity had slowed in recent days because of the increased tax burden.
“We are out to fight for our business because the tax rates are high. The rent has been increased in Nairobi, people have loans. It’s become hard to do business,” he said.
Traders who rely on consolidated cargo shipments said the new customs valuation would significantly increase their import expenses at a time when many small businesses are already struggling with rising operating costs.
They vowed to continue protesting every Friday until the KRA engages with them and reaches an agreement over the new customs measures.
The Kenya Revenue Authority, however, said the increase was intended to tackle under-declaration and undervaluation of imported goods.
The agency said such practices put compliant businesses and local manufacturers at a disadvantage, making the revised customs valuation necessary to promote fair competition and improve compliance.
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