The Kenya Association of Manufacturers (KAM) has sued the government and the Kenya Revenue Authority (KRA) over the increase in excise duty on imported industrial sugar under the Finance Act 2026.KAM filed a constitutional petition at the Milimani High Court challenging the increase in excise duty from Ksh7.50 to Ksh40 per kilogramme.In court documents seen by Kenyans.co.ke, the manufacturers argued that the higher duty had placed a heavy financial burden on businesses that rely on imported sugar.KAM is challenging Section 36(a)(vi) of the Finance Act 2026, which introduced the new excise duty rate.KAM wants the High Court to declare the enactment of the provision unconstitutional, arguing that it was undertaken without meaningful public participation."The Petitioner humbly prays for judgment against the Respondents for a declaration that the enactment of section 36(a)(vi) of the Finance Act, 2026 was undertaken in contravention of Articles 10(2)(a), 118(1)(b) and 201(a) of the Constitution of Kenya, 2010, for want of meaningful public participation, and that the said provision is accordingly null, void and of no legal effect," KAM argued.According to the manufacturers, the process contravened Articles 10(2)(a), 118(1)(b), and 201(a) of the Constitution, which provide for public participation and principles governing public finance.They want the court to declare that the new tax violates the constitutional requirement for fair sharing of the tax burden, arguing that the new excise duty could result in unnecessary duplication and cumulative over-taxation of a particular category of taxpayers.The government introduced a Ksh40 excise duty on imported sugar in the 2026 Finance Act, replacing the previous duty of Ksh7.5 per kilogram to promote local production.However, KAM argues that the duty was imposed despite the lawful use of imported sugar in the country.The manufacturers want the court to declare the provision irrational, arbitrary and disproportionate, arguing that it violates constitutional principles and the economic rights of their members and employees.Following the petition, Justice David Mburu certified the matter as urgent, directing the government, KRA and other mentioned respondents to respond to the matter within seven days, with the matter set for mention on October 15.
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