KRA’s Sh3.2m benchmark: Are we taxing non-compliance, or small business?

The Kenya Revenue Authority (KRA) has increased the minimum benchmark for a 40-foot container of general consolidated cargo from Sh2.5 million to Sh3.2 million, a 28% increase. This decision raises concerns among small traders, as it could turn profitable shipments into unviable ones. While KRA has a legitimate enforcement problem, how this increase is implemented and explained is crucial to avoid penalizing legitimate businesses.