The High Court of Kenya has ruled that the government’s decision to impose a 10 per cent import duty on crude palm oil through mechanisms of the East African community (EAC) is unconstitutional.
In a judgment delivered on November 27, 2025, by Justice Bahati Mwamuye, the Court ruled that the authority to impose taxes is a sovereign legislative function that cannot be delegated away to a regional body.
As such, the Court found that the process lacked specific and meaningful constitutional safeguards.
The case was filed by the Consumers Federation of Kenya (COFEK) to challenge the legality of the Government of Kenya’s decision to impose a 10% import duty on crude palm oil.
The Court made its ruling based on several key issues, namely:
- Unconstitutional Duty: The Court declared that the decision to stay the 0% import duty on crude palm oil and apply a 10% rate is unconstitutional, null, and void.
- Future Measures Require Oversight: Any future government decision to request a stay or take related measures under the East African Community’s Common External Tariff must undergo proper parliamentary scrutiny and public participation, in line with Articles 10, 201, and 209 of the Constitution and the Statutory Instruments Act. Failure to comply renders such measures unconstitutional.
- Prohibitory Order: The Court prohibited the Cabinet Secretaries for the National Treasury and EAC, the Attorney General, and the National Assembly—or anyone acting under their authority—from implementing or enforcing the EAC Gazette Notice of June 30, 2024, which introduced the 10% duty.
- Mandatory Public Participation: The Court declared that any future measure submitted to the EAC Council of Ministers that directly or indirectly impacts taxation must first undergo adequate public consultation and parliamentary review.
- Costs: As the matter concerned public interest litigation, each party was ordered to bear its own legal costs
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Consumers Federation of Kenya Arguments
The Consumers Federation of Kenya (COFEK) argued that taxation, or any change to it, is solely a parliamentary function.
The federation further stated that by going directly to the EAC Council of Ministers without Parliament’s approval, the Executive overstepped its authority and breached the Constitution.
In addition, the High Court heard that the move ignored the principle of public participation, as no consultations or stakeholder engagement were conducted.
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COFEK also claimed that the duty infringes on constitutional rights, including the right to adequate food, human dignity, and consumer protection, given the consequential rise in the cost of cooking oil and related products.
In addition, the petitioner asserted that the decision, taken without comprehensive consultation or a proper assessment of its economic impact, has destabilized the domestic edible oils industry by increasing raw material costs.
This escalation, COFEK argued, threatens the competitiveness of local manufacturers and risks the jobs of more than 10,000 Kenyans employed in the palm-oil processing sector and related value chains.
“It is contended that this escalation in production costs has adversely affected the competitiveness of local industries and poses an imminent threat of closure, with the potential loss of employment for more than 10,000 Kenyans engaged in the domestic palm-oil processing and related value-addition chains,” read the judgement.
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