Kenyans are set for relief at the checkout counter after the High Court on Thursday quashed a contentious 10% import duty on crude palm oil, the primary raw material for cooking oil. The move is expected to reverse a price surge that has strained household budgets for months.

The ruling by Justice Bahati Mwamuye declared the tax unconstitutional, null, and void, citing the government's failure to conduct public participation or seek parliamentary approval before its implementation. This decision directly addresses the core of Kenya's high cost of living, where the price of a simple meal is dictated by taxes on essential inputs.

The duty, which took effect on July 1, 2024, had an immediate and significant impact. Manufacturers reported that the price of a 20-litre jerrycan of cooking oil jumped from approximately KES 3,800 to KES 4,200 shortly after the tax was imposed. The Edible Oil Manufacturers Association of Kenya had actively petitioned the Treasury for its removal, warning the levy would make local products uncompetitive and burden consumers.

A Victory for the Consumer

The case was brought to court by the Consumer Federation of Kenya (COFEK), which argued that the government had bypassed critical legal and constitutional safeguards. In her judgment, Justice Mwamuye affirmed that regional trade policies, such as the East African Community's Common External Tariff under which the tax was introduced, do not override Kenya's sovereign constitutional requirements for public engagement.

The court's decision is not just about cooking oil. Manufacturers had warned that the 10% duty had a ripple effect, driving up the cost of other household staples that rely on palm oil, including:

• Soap
• Margarine
• Bread
• Chapattis and Mandazis

The removal of the duty is therefore anticipated to have a cascading effect, potentially lowering the prices of these everyday items.

What Happens Now?

While the court has barred the government and its agencies from collecting the tax, the crucial question for every Kenyan is when this relief will be felt in their pockets. Manufacturers have previously indicated that the tax was a direct cost passed on to consumers. With its removal, consumer advocates will be watching closely to ensure that the savings are transferred to the public without delay.

The ruling also sets a significant precedent, reinforcing the judiciary's role in safeguarding public participation in fiscal matters. Justice Mwamuye noted that these constitutional requirements are not “empty formalities” but crucial mechanisms for democratic scrutiny. As Kenyans await lower prices, the judgment stands as a powerful reminder that taxation without representation and participation is untenable.