Ruto cuts cargo benchmark, slashes rail charges in deal with traders
Kenyan President William Ruto has reached an agreement with traders to reduce cargo benchmarks and railway transport costs. These measures are intended to lower the cost of doing business and support small and medium-sized enterprises.
Why it matters
Government intervention in logistics costs directly impacts inflation and the operational viability of small businesses in the region.
President William Ruto during a meeting with representatives of MSMEs/PCS
President William Ruto’s administration has agreed to a raft of measures to lower the cost of doing business for Kenyan traders, including cutting the benchmark for general consolidated cargo and sharply reducing railway charges for goods moved from the Inland Container Depot (ICD).
The measures were agreed during a meeting between Ruto, Micro, Small and Medium Enterprises (MSMEs), traders and stakeholders in the consolidated cargo sector, following disagreements over taxation, customs clearance and handling of imported goods.
Under the deal, the Kenya Revenue Authority (KRA) will reduce the applicable benchmark for general consolidated cargo from Sh2.5 million to Sh2 million.
The government said the intervention follows concerns by traders that the previous benchmark had increased their cost of doing business and threatened thousands of small and medium-sized enterprises.
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