Traders in Nairobi’s Kamukunji, Gikomba and Nyamakima markets have voiced strong opposition to a new Kenya Revenue Authority (KRA) benchmark, which they claim will negatively impact their businesses. The benchmark, set at Sh3.2 million, is intended to streamline tax collection and improve compliance. However, market vendors argue that the threshold is too high, making it difficult for small and medium-sized enterprises to meet the requirements.
Many traders fear that the new rule will force them to close temporarily or even permanently, as they cannot afford the increased administrative costs. Some have already begun planning to halt operations until the policy is revised. The protests highlight growing concerns among local businesses about the economic impact of recent tax reforms.
The KRA has not yet responded to the criticism, but officials have emphasized the need for stricter compliance measures to combat tax evasion. As the situation escalates, the government faces mounting pressure to find a balance between regulatory enforcement and supporting small businesses.
The dispute underscores the challenges of implementing new economic policies in a city where many entrepreneurs operate on tight margins. With the potential for widespread disruption, the outcome of this conflict could have significant implications for Nairobi’s informal sector.
