This archive report was first published on 9 June 2020.
Published on June 9, 2020, Tanzania's Kioo Company Ltd, a major glass manufacturer, has filed a case against the Kenya Revenue Authority (KRA) at the East African Court of Justice.
The company, based in Dar es Salaam, claims that Kenya's recent introduction of a 25 per cent excise duty on imported glass is a breach of the Customs protocol and violates Tanzania's rights under the EAC Treaty.
According to the application, Kenya enacted the Business Laws (Amendment) Act 2020, which amended the Kenya Excise Duty Act 2015 to impose the excise duty on imported glass, effective from March 18, 2020.
Represented by the firm Anjarwalla & Khanna, Kioo is seeking an order from the EACJ to prohibit Kenya from implementing the impugned decision, remove the enacted excise duty, and fine Kenya for their actions.
The company argues that the introduction of the excise duty has made its products uncompetitive in the Kenyan market, with prices becoming more expensive than locally manufactured glass in Kenya.
As a result, Kioo claims that its customers in Kenya have reduced their demands for its products, and the company is likely to lose its competitive edge, potentially rendering over 600 workers jobless.
