DNK International By Elizabeth Were,Nairobi.
The High Court in Nairobi has temporarily stopped the Kenya Revenue Authority (KRA) from collecting excise duty on imported float glass used by registered local processors, pending the hearing of a constitutional petition challenging the implementation of the Finance Act, 2025.
In interim orders issued by Justice Bahati Mwamuye at the Milimani High Court, the court granted conservatory reliefs sought by glass processor Peter Imbayi Indasi, trading as Glassmart Hardware, against the Attorney General, the Cabinet Secretary for Investment, Trade and Industry, and KRA.
The court allowed the release of imported float glass consignments subject to the provision of bank guarantees or insurance bonds equivalent to the disputed excise duty, pending the inter partes hearing of the application. Justice Mwamuye also directed KRA to keep records of any taxes and statutory charges foregone should the petition fail.
The petition challenges the failure by the Ministry of Investment, Trade and Industry to issue and communicate a statutory exemption provided under the Finance Act, 2025, which exempts registered float-glass processors from paying excise duty amounting to 35 percent of excisable value or KSh500 per square metre, whichever is higher.
According to court filings, the exemption was expressly enacted by Parliament to support local value addition and protect domestic manufacturers. The petitioner argues that despite verification inspections conducted by the ministry in August 2025—culminating in a report recommending approval of exemptions for ten registered processors—the exemption has not been formally issued or communicated to KRA more than four months later.
The Kenya Association of Manufacturers (KAM), joined as an interested party, is said to have written multiple letters to the ministry and facilitated inspections that confirmed the eligibility of processors involved in construction and automotive glass production.
The petitioner contends that the prolonged administrative inaction is illegal, unreasonable, and a violation of the right to fair administrative action under Article 47 of the Constitution. He argues that processors have suffered economic harm through delayed clearance of consignments, mounting demurrage charges, and the risk of business closures and job losses.
Justice Mwamuye directed the petitioner to immediately serve all parties and ordered respondents to file their responses by January 16, 2026. The petition seeks declarations, orders of mandamus compelling issuance of the exemption, and refunds of excise duty already paid since August 2025.
The case is expected to test the limits of administrative discretion in implementing tax laws passed by Parliament and the protection of legitimate expectations for local manufacturers.
[DNK-International@February 10,2026]
