Kenyan police fired tear gas at small-scale traders in Nairobi on Friday as demonstrations erupted over a recent increase in import duties, forcing hundreds of businesses in parts of the capital to close and bringing sections of the city to a standstill.
The protests were driven by concerns that the higher charges would increase the cost of importing goods and place additional pressure on small businesses already dealing with rising living and operating expenses. Traders gathered in central Nairobi and marched in an effort to make their objections heard, with some heading towards parliament.
Police responded to the demonstrations with tear gas as tensions rose between officers and protesters. The unrest also prompted a number of traders to shut their businesses, with some closing specifically to participate in the protest while others said they did so because of concerns about their safety.
At the centre of the dispute is a change in import duty that came into effect last week. Kenya’s revenue authority said the adjustment was introduced to address the under-declaration and undervaluation of imported goods, practices it said create an unfair advantage over businesses that comply with customs requirements and undermine local manufacturers.
Under the revised system, the minimum customs benchmark for a consolidated 40-foot container has increased to 3.2 million Kenyan shillings, equivalent to about $24,700, from the previous benchmark of 2.5 million shillings, or approximately $19,320.
For traders who depend on consolidated shipments, the increase represents a significant additional cost. Small-scale businesses often use such arrangements to share shipping expenses and make importing goods more affordable, and traders fear that the higher customs benchmark will make that model increasingly difficult to sustain.
The protesters argue that the additional charges will ultimately be passed through the supply chain, increasing the cost of imported goods and putting further pressure on businesses and consumers. They say smaller traders have fewer financial resources to absorb the increase compared with larger companies.
The demonstrations therefore reflected wider concerns about the cost of doing business in Kenya. Traders said they were not simply protesting a customs adjustment but were also expressing frustration over the broader economic pressures affecting their ability to operate and maintain their livelihoods.
Muturi Kariuki, one of the traders who took part in the demonstrations, said the protesters were defending what they regarded as their basic rights as citizens and business owners.
“We are standing for our citizenship and our right to do business and our right to build our future,” Kariuki told Reuters.
Kariuki was among traders who closed their businesses as part of the protest. Other traders reportedly shut their shops because they were concerned about the potential consequences of the demonstrations and wanted to avoid putting themselves or their businesses at risk.
The disruption was particularly visible in central Nairobi, where business activity was affected as traders joined the protest or remained away from their shops. The presence of police and the use of tear gas added to the tension as protesters attempted to advance their demands.
The demonstrations also highlighted the difficult balance facing Kenya’s authorities as they seek to strengthen customs enforcement while avoiding measures that could place excessive pressure on smaller businesses. The revenue authority has defended the revised import benchmark as a measure intended to improve compliance and address practices that disadvantage legitimate businesses.
For traders, however, the immediate concern is the financial impact. They contend that higher import costs could make it more difficult to bring goods into the country, potentially reducing profit margins and forcing businesses to increase prices.
Reporting from Nairobi, Al Jazeera correspondent Malcolm Webb said the demonstrations were taking place amid widespread frustration over the rising cost of living. He described the mood among protesters as reflecting a perception that Kenyans were being required to contribute more while receiving less in return.
The protests come against a backdrop of mounting pressure on small businesses, which depend heavily on predictable costs to remain viable. For traders who rely on imported products, changes in customs charges can have a direct effect on purchasing costs, retail prices and the amount of capital required to maintain stock.
The traders’ decision to march towards parliament was intended to take their concerns directly to lawmakers and put political pressure on the authorities to reconsider the impact of the new charges. Their action also demonstrated the growing concern among sections of Nairobi’s trading community about the financial consequences of the policy.
While the revenue authority maintains that the revised duty benchmark is aimed at correcting customs practices and protecting compliant businesses and local manufacturers, traders remain concerned about how the policy will affect their day-to-day operations.
Friday’s confrontation consequently brought two competing priorities into sharp focus: the government’s effort to strengthen customs revenue and enforcement, and small traders’ demand for an environment in which they can continue operating without facing what they consider unsustainable additional costs.
With businesses closed and police using tear gas to disperse protesters, the dispute over import duties has developed into a wider expression of economic frustration among traders in Nairobi. The demonstrations underline the sensitivity of policies that increase the cost of imports at a time when businesses and consumers are already confronting higher expenses.
Kenyan Police Fire Tear Gas as Nairobi Traders Protest Import Duty Increase
