Bad News for Ruto as Section of Kenyans Moves to Court Over This — Details

Kenyan manufacturers have moved to court to challenge a new tax introduced under the Finance Act 2026, setting the stage for a fresh legal battle between the industry and the government.

The Kenya Association of Manufacturers (KAM) has filed a petition at the Milimani High Court seeking to have the new excise duty on imported industrial sugar declared unconstitutional.

Under the Finance Act 2026, the excise duty on industrial sugar increased sharply from KSh7.50 to KSh40 per kilogramme. The change has raised concerns among manufacturers who use imported sugar as an industrial input.

KAM argues that the new tax places a heavy financial burden on companies that depend on the commodity for production.

The manufacturers have also challenged the process through which the tax was introduced. They claim there was no meaningful public participation before the provision became law.

In its petition, KAM argues that the tax violates constitutional requirements on public participation and fair sharing of the tax burden. The association has also described the new charge as irrational, arbitrary and disproportionate.

The case comes as the government continues to push for stronger local manufacturing and increased domestic production.

The Ministry of Investments, Trade and Industry has previously held discussions with KAM over concerns surrounding new and increased taxes affecting industrial inputs. These include sugar, wood panels, printing ink, resins and other materials used by manufacturers.

The High Court has certified KAM’s case as urgent. The government, Kenya Revenue Authority and other respondents have been given seven days to respond, with the matter scheduled for mention on October 15.

The court will now determine whether the disputed tax provision was introduced in line with the Constitution.

The legal battle could have wider implications for manufacturers and the cost of industrial production in Kenya.

What do you think about the new KSh40 tax on industrial sugar? Share your views in the comments.

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