This archive report was first published on 13 November 2019.
On November 13, 2019, the Kenya Revenue Authority (KRA) launched its Excisable Goods Management System (EGMS), which aims to raise Sh4 billion from bottled water, juices, energy drinks, soda, and other non-alcoholic beverages.
However, the move has attracted criticism from affected firms, with Kevian Kenya's Managing Director, Kimani Rugendo, stating, "This is a typical case of government institution ignoring the rule of law."
The court had ordered that the status quo be maintained until a judgment was delivered on November 21, 2019. However, KRA proceeded with the implementation of the EGMS, directing traders to affix e-stamps on their products.
Eleven manufacturers, including Kevian Kenya, have moved to court to contest compliance costs associated with the e-stamps, which they claim include configuring their production lines to incorporate stamp-fixing machines.
The manufacturers argue that the additional Sh0.60 per stamp, when added to inflation adjustment of Sh11.75, will increase the cost of production and raise consumer prices.
