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Manufacturers take 433% industrial sugar duty rise to court
The excise duty on imported industrial sugar went from Ksh 7.50 to Ksh 40 a kilo in July. Manufacturers say it could add Ksh 6 billion a year to their costs.
SugarKsh 40
excise duty on every kilo of imported industrial sugar, up from Ksh 7.50
The Kenya Association of Manufacturers (KAM) has gone to the High Court in Milimani, Nairobi, to challenge the rise in excise duty on imported industrial sugar. The Finance Act, 2026 raised the duty from Ksh 7.50 to Ksh 40 a kilo from 1 July, an increase KAM puts at 433%.
On 7 October the court certified the case as urgent. The government has seven days to respond once served, and the case is due for mention on 15 October for further directions.
What manufacturers say
Industrial sugar is a raw material for drinks, sweets, bakeries and other food factories. KAM estimates the higher duty could add up to Ksh 6 billion a year to manufacturers' costs, cut capacity use by as much as half and put about 3,000 jobs at risk. It says taxes and levies now come to about 90% of the sugar's landed cost, in an industry where margins are 3% to 5%.
KAM also argues that the change was passed without enough public participation, and that factories in Uganda and Tanzania do not pay a similar excise duty on industrial sugar, which leaves Kenyan products at a disadvantage in the region.
- Industrial sugar+32.50
- 7.5040.00
Finance Act, 2026, as reported by Capital FM and The Standard.
Why it matters
- The higher duty has applied since 1 July. No court order had suspended it when this was written.
- Drinks, sweets, baked goods and other foods made with sugar are where the extra cost is most likely to show, in prices or in margins.
- The next date to watch is 15 October, when the case comes up for mention.
