The Kenya Association of Manufacturers (KAM) has lodged a constitutional petition at the Milimani High Court to contest a 433 per cent rise in excise duty on imported industrial sugar.
The duty, introduced under the Finance Act, 2026, jumped from KSh7.50 per kilogram to KSh40 per kilogram on July 1, 2026, pushing combined taxes and levies to roughly 90 per cent of the commodity’s cost, insurance and freight (CIF) value.
KAM estimates the hike could add about KSh6 billion to manufacturers’ annual expenses, cut capacity utilisation by as much as 50 per cent and endanger roughly 3,000 jobs.
The association also warned that the increase could erode Kenya’s competitiveness, noting that industrial sugar in Uganda and Tanzania is not subject to a comparable excise duty.
KAM further contended that the tax was introduced without adequate public participation, breaching procedural requirements.
Justice David Mburu certified the application as urgent on October 7, directing KAM to serve the petition and related documents on the respondents by close of business on October 8; the respondents have seven days to file their replies, and the case is set for mention on October 15.
