Nairobi, Kenya – The High Court has issued an order of mandamus compelling the Kenya Revenue Authority (KRA) to communicate clearance to the Kenya Association of Manufacturers (KAM), allowing registered processors to import float glass without paying excise duty.
In its ruling, the court declared that the statutory exemption under the Finance Act 2025 is self-executing once the legal conditions are met and cannot be frustrated by administrative inaction.
The Petition
The case was filed by activist Peter Imbayi Indasi, who argued that KRA’s failure to issue the exemption contravenes the Finance Act 2025. He said the omission undermines Parliament’s intent, frustrates Kenya’s national industrial policy, and places registered processors at a competitive disadvantage.
Indasi emphasized that many importers and traders, particularly small and medium-sized enterprises (SMEs) operating on thin margins, have been severely affected.
“If allowed to persist, this measure will likely result in widespread closure of operations and the effective collapse of the sector,” he stated.
Court’s Declaration
Justice Mwamuye affirmed that the exemption is not discretionary and must be applied once statutory requirements are satisfied. The ruling effectively compels KRA to act, ensuring that registered processors can access the relief Parliament intended.
Implications for Industry
The decision is a significant win for Kenya’s manufacturing sector, particularly for businesses reliant on float glass imports. By removing excise duty barriers, the ruling is expected to:
- Enhance competitiveness of local processors.
- Support SMEs struggling with high operational costs.
- Align with national industrial policy aimed at strengthening domestic manufacturing.
Conclusion
The High Court’s order underscores the judiciary’s role in safeguarding transparency, accountability, and adherence to statutory provisions. For manufacturers, the ruling provides much-needed clarity and relief, potentially stabilizing a sector at risk of collapse.
