KRA Tightens Tax Rules as Traders Face Fresh Scrutiny Under Ruto’s Cargo Deal

The Kenya Revenue Authority (KRA) has tightened tax compliance requirements for traders importing goods through consolidated cargo, requiring cargo handlers to disclose individual importers’ details and issue electronic tax invoices.

The measures follow an agreement reached between President William Ruto and small-scale traders in September 2026 to reduce the customs benchmark for general consolidated cargo to KSh 2 million from KSh 3.2 million.

Under the new requirements, cargo consolidators must provide details including each importer’s name, KRA Personal Identification Number (PIN), national identity card number, telephone number, description of goods and the value of the shipment.

The directive took effect on September 13, 2026, and KRA is now urging consolidators, customs agents and importers to comply with the rules.

The authority says electronic tax invoices issued through the Electronic Tax Invoice Management System (eTIMS) will help eligible VAT-registered importers claim input VAT, subject to applicable tax laws.

The crackdown is also intended to address loopholes that allow some traders to under-declare goods or conceal the identities of importers. KRA says accurate shipment records will improve transparency, strengthen accountability and promote fair competition among businesses.

However, the new requirements could increase administrative work for cargo consolidators and traders, particularly those handling shipments for numerous small-scale importers.

For traders, the challenge will be to meet the disclosure and invoicing requirements while managing the cost of importing goods.

The measures mark a renewed push by the government to balance lower cargo clearance benchmarks with stricter tax compliance.

Do you think the new KRA requirements will improve tax compliance without placing too much pressure on small traders?

The-Daily-Bulletin feedback-opera-news-app@opera.com