The Kenya Association of Manufacturers filed a constitutional petition at the Milimani High Court to challenge a 433 percent jump in excise duty on imported industrial sugar. The increase, which took effect on July 1, 2026 under the Finance Act, 2026, raised the duty from Sh7.50 per kilogram to Sh40 per kilogram. The petition names the State Law Office, the Kenya Revenue Authority and two other respondents as respondents.
The association warns the higher tax threatens manufacturers across multiple industries that depend on imported industrial sugar as a production input. KAM estimates that combined taxes and levies on the imported commodity now represent approximately 90 percent of its cost, insurance and freight value.
The manufacturers' group projects significant economic consequences from the duty increase. KAM estimates that businesses could face an additional Sh6 billion in annual costs, with factory capacity utilization potentially dropping by as much as 50 percent. The association says approximately 3,000 jobs could be at risk from the higher production expenses.