President William Ruto is facing renewed questions from traders after a Kenya Revenue Authority (KRA) letter appeared to differ from the relief he publicly promised over the cost of imported containers.
Ruto had told traders that the tax benchmark on containers would be reduced from Sh3.2 million to Sh2 million. His remarks came after weeks of frustration among traders, especially those importing goods from China. Many businesses had complained that the higher valuation was making it difficult for them to clear their goods and continue operating.
The announcement appeared to offer a solution to a problem that had already caused anger in the trading community. Traders welcomed the statement, with many expecting KRA to immediately implement the new Sh2 million benchmark.
However, the latest communication from the tax authority has raised fresh concerns over whether the promised reduction has actually been put into effect in the way traders expected.
For traders, the issue is not simply about the difference between two figures. It is about whether a commitment made by the President will be reflected in the rules being applied by government agencies.
The dispute comes at a time when small importers are already facing rising business costs. Many traders bring in clothes, household items, electronics, shoes and other goods from China and other markets. Some share containers with other traders to reduce transportation and clearing costs.
Any increase in the amount used to calculate taxes can therefore have a direct effect on the final price of their goods.
When KRA raised the benchmark to Sh3.2 million, traders argued that the new figure was too high for many of the containers they were importing. Some said the valuation did not reflect the actual value of their goods.
The pressure eventually spilled into protests and shop closures as traders sought government intervention.
The State House meeting was therefore seen as an important moment. Ruto directed that the figure be reduced and also called for high-value goods to be treated separately. The intention, according to the President’s public remarks, was to create a fairer system that would not place the same burden on traders dealing in different types of goods.
But the KRA letter has now become the centre of the disagreement. Traders say the contents do not fully reflect what they understood from the President’s announcement.
They are questioning why a commitment made publicly appears different when it reaches the official implementation stage.
The disagreement has also raised wider concerns about the relationship between political promises and government agencies. Traders can only plan their businesses when they know the rules that will be applied to them.
If a President announces a lower tax benchmark but an official communication from the responsible agency creates a different position, businesses are left uncertain about what to follow.
For small traders, that uncertainty can be expensive. Goods may remain at the port for longer, additional storage charges can accumulate and the trader may eventually be forced to sell at a higher price to recover the money spent.
Some businesses may also decide not to import at all if the costs become too difficult to predict.The traders’ frustration is therefore understandable. They are not arguing that imports should be tax-free. Their main concern is the level at which goods are valued and whether that valuation is reasonable.
They want a system that allows them to pay the required taxes without being pushed out of business.
The latest dispute also places pressure on the government to provide a clear explanation. If the Sh2 million figure announced by Ruto is the new benchmark, traders want KRA’s documents to clearly show how and when it applies.
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