Cooking Oil Prices Set for Relief After Court Quashes 10% Palm Oil Duty

Cooking Oil Prices Set for Relief After Court Quashes 10% Palm Oil Duty

Kenyans have secured a supposed victory after the High Court declared the government’s decision to impose a 10 percent import duty on crude palm oil unconstitutional. The ruling, delivered by Justice Bahati Mwamuye on Thursday, halted a policy that had triggered an immediate spike in the cost of basic household commodities.

Justice Mwamuye ruled that the State breached fundamental constitutional requirements by instituting the new tariff without parliamentary approval and without affording meaningful public participation. At the heart of his ruling, the judge declared that the move to suspend the long-standing zero-rated import duty, which was then replaced with a 10 percent charge, was illegal ab initio.

“A declaration be and is hereby issued that the decision of the Government of Kenya to stay the application of the zero percent rate of import duty on crude palm oil and apply a rate of 10 percent is unconstitutional, null, and void,” Justice Mwamuye stated.

He observed that the government bypassed procedures required under Articles 10, 201 and 209 of the Constitution, as well as the Statutory Instruments Act, all of which prescribe publicity, accountability and involvement of the public before the State embarks on any policy with significant fiscal impact.

The judge further observed that the tax increase had swift and far-reaching consequences for consumers, since crude palm oil is a crucial raw material for cooking oil manufacturers and many household essentials.

Evidence presented by the Consumer Federation of Kenya (COFEK), which filed the petition, showed that cooking oil prices rose sharply soon after the tariff took effect, an indicator of the policy’s heavy socioeconomic impact.

“It is important to observe that the constitutional requirements of parliamentary approval and public participation are not empty formalities,” Justice Mwamuye said. “They serve as crucial mechanisms to subject policy decisions, especially those with significant socioeconomic ramifications, to democratic scrutiny and debate.”

The judge added that by ignoring these processes, the State denied Kenyans a chance to engage on a decision that directly affected their right to food and human dignity.

Although COFEK had argued that the tax increase violated several rights of consumers, the court held it was not necessary to make a substantive decision on those claims, observing that the procedural defects alone were sufficient to strike down the government’s action.

Justice Mwamuye also made it clear that even when Kenya works within regional frameworks such as the EAC Common External Tariff, the government is still bound by national constitutional safeguards. He said regional obligations cannot supersede internal approval procedures.

Consequently, the court issued a prohibition preventing the government and its agencies from implementing or enforcing the EAC Gazette Notice of June 2024, which had introduced the 10 percent duty. The ruling also ordered that any future changes to taxation under the EAC CET must undergo full public participation and parliamentary scrutiny.

“A finding of unconstitutionality based on a flawed process is sufficient to dispose of this matter,” Justice Mwamuye concluded.

https://nairobiwire.com/2025/11/high-court-ruling-10-percent-crude-palm-oil-duty-unconstitutional.html