Kenya police fire tear gas to disperse traders protesting import duty hike

Police fired tear gas to disperse small-scale traders protesting against an import duty hike, a Reuters witness saw on Friday, while hundreds of businesses closed in central Nairobi

The Kenya Revenue Authority said its decision to raise the duty with effect from August 20 aimed to curb under-declaration and undervaluation of imports, which it said disadvantages compliant businesses and local manufacturers.

Traders say the change would raise the cost of clearing goods and hurt small businesses that rely on consolidated shipments to reduce import costs.

"We are standing for our citizenship and our right to do business and our right to build our future," said Muturi Kariuki, who joined the demonstrations.

Kariuki was among the traders who closed their businesses in order to protest. Others did so for safety reasons, traders said.

The duty change raises the minimum customs benchmark for a consolidated 40-foot container to 3.2 million Kenyan shillings ($24,700) from 2.5 million shillings.

The authority said the 3.2 million shilling figure was a minimum reference point, not a fixed value for every container. Importers whose goods exceed that value must declare their actual worth and pay the applicable duties.

(Reporting by Vincent Mumo Nzilani and Monicah Mwangi; editing by Ammu Kannampilly and Barbara Lewis)