The Kenya Association of Manufacturers (KAM) has lodged a constitutional petition at the Milimani High Court against the government and the Kenya Revenue Authority (KRA) over the Finance Act 2026’s increase in excise duty on imported industrial sugar.

The petition seeks to overturn the amendment that raised the duty from Ksh7.50 to Ksh40 per kilogram, arguing that the change imposes a heavy financial burden on businesses that rely on imported sugar.

KAM contends that Section 36(a)(vi) of the Finance Act 2026, which introduced the higher rate, was enacted without meaningful public participation, violating Articles 10(2)(a), 118(1)(b) and 201(a) of the Constitution.

The association argues the provision is irrational, arbitrary and disproportionate, breaching constitutional principles of fair tax burden sharing and potentially leading to duplicate or cumulative taxation of a specific taxpayer group.

The government introduced the Ksh40 excise duty on imported sugar in the 2026 Finance Act, stating the measure aims to promote local production, replacing the previous Ksh7.5 per kilogram rate.

KAM maintains that the duty was imposed despite the lawful use of imported sugar in Kenya, and seeks a declaration that the provision is null and void.

Justice David Mburu certified the petition as urgent, ordering the government, KRA and other respondents to file responses within seven days, with a court mention scheduled for 15 October.