Traders in Nairobi’s Kamukunji, Gikomba, and Nyamakima markets have expressed strong opposition to a new Kenya Revenue Authority (KRA) benchmark, threatening a nationwide shutdown. The benchmark, set at Sh3.2 million, aims to standardize tax calculations for businesses reliant on cash transactions. Market vendors argue the threshold is too high, making it difficult for small businesses to comply.
The protest comes amid growing concerns about the impact of the new rule on local commerce. Many traders claim the benchmark will force them to register as formal businesses, increasing administrative burdens and costs. Some have already begun preparing to halt operations if the policy is enforced.
The KRA has defended the benchmark as a measure to improve tax collection efficiency. However, traders insist the policy fails to account for the financial realities of small-scale operators. Negotiations between the KRA and market representatives are ongoing, but no resolution has been reached yet.
The situation highlights the tension between regulatory reforms and the operational challenges faced by informal sector businesses in Nairobi.
