PwC Urges Importers to Seek Refunds After High Court Strikes Down 10% Palm Oil Duty

Kenya, 13 January 2026 - Importers of crude palm oil in Kenya have been advised to review and pursue duty refunds after a High Court ruled that a 10 per cent import levy on the commodity was unconstitutional and improperly enacted, potentially delivering a boost to traders and processors burdened by the tax.

In a tax alert, professional services firm PricewaterhouseCoopers (PwC) said importers who paid the 10 per cent duty during the 12-month period ending June 30, 2025 should consider seeking refunds of the overpaid amounts now that the levy has been struck down.

The High Court found that the palm oil duty, introduced under the East African Community Common External Tariff (EAC CET), violated key constitutional principles because it was applied without meaningful public participation as required under Articles 10, 209 and 210 of the Constitution.

The ruling clarified that taxation powers lie exclusively with Parliament, and taxes cannot be enforced without being properly enacted through parliamentary processes.

The court subsequently barred further enforcement of the 10 per cent duty for crude palm oil unless it is lawfully subject to parliamentary scrutiny and public engagement.

It also directed that any future imposition of tariffs under the EAC CET should be accompanied by appropriate public participation and follow constitutional requirements.

PwC’s advisory to importers underscores that import duty overpayments could be recoverable. However, the firm cautioned that government authorities retain the right to appeal the High Court decision, meaning importers should consult tax and legal advisors before initiating refund claims.

The duty in question was originally implemented in part to align Kenya with an EAC CET provision allowing a 10 per cent duty on imported crude palm oil that would otherwise enter duty-free under the regional tariff regime.

Industry players previously raised concerns that the duty hike contributed to higher cooking oil production costs in Kenya, as crude palm oil is a key raw material for local edible oil manufacturers.

Manufacturers have warned that heightened import levies on palm oil feedstocks directly increase production costs for cooking oils, a staple product for many Kenyan households, which in turn can push retail prices higher.

The removal of the disputed duty could ease cost pressures for producers and potentially moderate consumer prices if savings are passed along the value chain.