The Kenya Association of Manufacturers (KAM) has moved to court to fight a sharp increase in excise duty on imported industrial sugar. The lobby group filed a constitutional petition at the Milimani High Court, challenging a move that has seen the duty jump from Ksh7.50 to Ksh40 per kilogramme under the Finance Act 2026.
For businesses that depend on imported sugar, this is not a small change. Court documents seen by Kenyans.co.ke show that manufacturers say the higher duty has put a heavy financial strain on their operations. For many of them, sugar is a key raw material, and when its cost goes up, the impact is felt right through the production line.
KAM’s main complaint is about how the change was made. The association says the government went ahead with the new tax without giving the public a real chance to have a say. In their view, that goes against the constitution, which requires meaningful public participation whenever decisions like this are made. They also say the process did not respect the principles that guide how public money is raised and managed.
The manufacturers are also asking the court to look at the substance of the tax itself. They argue that it is irrational, arbitrary and disproportionate. According to them, the new duty places an unfair share of the tax burden on one group of players, and could lead to the same goods being taxed more than once. They say this kind of cumulative over-taxation hurts businesses that are already working hard to stay afloat.
On the other side, the government has said the higher duty is meant to protect local sugar production. The idea is that by making imported sugar more expensive, local millers will have a better chance to grow and compete. KAM, however, insists that imported sugar has a legitimate and lawful place in the country’s industries, and that punishing its use with such a steep duty does not make sense.
The case has already moved quickly. Justice David Mburu certified the matter as urgent, which means it will not sit on a shelf for months. The government, the Kenya Revenue Authority and other respondents have been given seven days to respond to the petition. The matter will be back in court for mention on October 15, and many business owners will be keeping a close eye on what happens next.
Whatever the court decides, this case is about more than sugar. It touches on how the government makes tax decisions, whether ordinary Kenyans and businesses are given a voice in that process, and how far the state can go in using taxes to shape the economy.
