Kenya Revenue Authority (KRA) policies under Board Chairman Nderitu Muriithi are pushing numerous small and medium-sized importers, many operated by Kikuyu traders which now looks like they’re being targeted, to the brink of closure amid sharp increases in tax demands that render operations unsustainable.
Businesswoman Loise Kim is among those affected, reporting that her operations now face collapse after KRA added approximately KSh 1 million in taxes per imported container.
These additional costs cannot be easily passed on to customers without losing sales, given the thin margins typical in the import sector. Similar traders describe demands arriving without clear prior notice, converting previously profitable ventures into immediate losses.
Muriithi assumed the role of KRA Board Chair in early 2025 and has overseen efforts to broaden the tax base using digital systems, notably the Electronic Tax Invoice Management System (eTIMS). Starting January 2026, KRA matches income declarations in tax returns against real-time eTIMS invoices, customs import data, and withholding tax records.
Importers encounter heightened scrutiny comparing declared profits to import volumes. The authority reports strong revenue growth, collecting over KSh 2.8 trillion in the 2025/26 financial year, with manufacturing, wholesale and retail trade, energy, and other sectors driving performance.
Critics contend that aggressive enforcement through audits, disallowed expenses lacking proper e-invoices, and operational restrictions such as use of the “Special Table” disproportionately burdens small businesses. Kikuyu traders, who hold a prominent position in Kenya’s import and wholesale sectors, report bearing the heaviest impact.
While social media discussions sometimes frame the pressure in ethnic or political terms, KRA maintains that rules apply uniformly to all to close evasion gaps, promote formal compliance, and generate funds for public services.
Muriithi has publicly emphasized building taxpayer trust, simplifying processes, and minimizing disruptive annual tax changes. He advocates expanding the tax base so that fewer compliant businesses shoulder the primary load.
Nevertheless, affected traders cite rising compliance costs, frozen accounts, and competitive disadvantages against informal operators who evade full requirements. Some have shifted suppliers, reduced staff, or prepared to exit entirely.
Kenya’s economy relies heavily on these small importers for employment and the steady flow of goods. Although KRA’s recent collections demonstrate success in key formal sectors, the intensified squeeze on smaller players risks contributing to a broader slowdown if not managed carefully. Growing calls urge fairer implementation, improved communication, and practical support for formalization to prevent sudden shocks.
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