NAIROBI, Kenya — The High Court of Kenya has nullified the government’s decision to impose a 10pc import duty on crude palm oil via external tariff adjustments under the East African Community (EAC), declaring the move unconstitutional.
The ruling delivered on November 27, 2025, by Justice Bahati Mwamuye underscores that taxation remains a sovereign function of Parliament and cannot be outsourced to a regional body.
The decision stems from a petition filed by the Consumers Federation of Kenya (COFEK), which challenged the legality of the government’s June 30, 2024, Gazette notice — the instrument that imposed the 10pc duty.
COFEK argued that by bypassing Parliament, the government violated constitutional provisions and denied the public meaningful participation in matters affecting the cost of living.
In his ruling, Justice Mwamuye held that the duty — which replaced a previous zero-per-cent rate — was implemented without parliamentary scrutiny or public consultation, in breach of Articles 10, 201, and 209 of the constitution as well as the requirements of the Statutory Instruments Act. Consequently, he declared the duty “null and void.”
The Court also issued a prohibitory order barring the Cabinet Secretaries for the National Treasury and EAC, the Attorney General, and lawmakers in Parliament from implementing or enforcing the contested EAC Gazette notice.
Future adjustments to tariffs via the EAC common external tariff will now require parliamentary approval and meaningful public participation before taking effect.
Justice Mwamuye further emphasised that any measure submitted to the EAC Council of Ministers that directly or indirectly changes tax rates must first undergo transparency protocols, public consultation, and legislative oversight.
Because this was a matter of public interest litigation, each party was ordered to bear its own legal costs.
COFEK argued that the unilateral import duty increase threatened fundamental rights such as access to affordable food, consumer protection, and human dignity, given that palm oil is a staple ingredient in many Kenyan households, widely used in cooking and food processing.
The federation also warned that the duty would undermine the domestic edible oils sector by increasing raw material costs. According to COFEK, more than 10,000 jobs in palm-oil processing and downstream value-addition chains stood to be lost if local manufacturers became uncompetitive.
Justice Mwamuye’s ruling acknowledged these concerns: by raising input costs abruptly and without stakeholder consultation, the government’s action destabilised local industry, cast doubt on food affordability, and violated constitutional protections.
What This Means Going Forward
- Parliamentary Primacy Restored: Any future change to import duties — including those resulting from EAC tariff adjustments — must now be debated and approved by Parliament, reinforcing constitutional checks and balances.
- Public Participation Mandated: The ruling institutionalises meaningful stakeholder engagement and public input before tax-related regulatory changes, enhancing transparency and accountability.
- Relief for Consumers and Industry: Households reliant on palm oil may see reduced prices as the duty is struck down; local edible-oil manufacturers will avoid increased costs that threatened their viability.
- Precedent for Oversight of Regional Tax Instruments: The judgment sets a constitutional precedent limiting the Executive’s ability to delegate tax-raising powers via regional blocs without domestic legislative and public oversight.
Government officials are yet to respond to the ruling. Observers say the decision could spur a wave of scrutiny over previous EAC-driven tariff adjustments and prompt a review of trade policies implemented without parliamentary or public input.
For now, the judgment is being widely hailed by consumer rights groups, farmers’ associations, and local industry bodies, who view it as a critical victory for constitutional governance and protection of Kenya’s economic sovereignty.
