This archive report was first published on 8 June 2020.
On June 8, 2020, Tanzanian glass manufacturer Kioo Company Ltd filed a case against the Kenya Revenue Authority (KRA) at the East African Court of Justice.
The company, based in Dar es Salaam, is one of the largest manufacturers of container glass in East and Central Africa, exporting almost 60% of its products outside Tanzania.
Kioo claims that Kenya's recent enactment of the Business Laws (Amendment) Act 2020, which amended the Kenya Excise Duty Act 2015, is a breach of the Customs protocol.
The company is seeking to have the 25% excise duty removed and for Kenya to be fined for its actions, arguing that the duty is a violation of Tanzania's rights under the EAC Treaty.
According to the application, the introduction of the excise duty has made Kioo's products more expensive than locally manufactured glass in Kenya, leading to a reduction in demand from Kenyan companies.
The move is also likely to render over 600 workers at Kioo jobless.
Kenya has yet to respond to the application.
