New Excise Duty clause in Finance Bill threatens Sh350b trade in EAC

President William Ruto and his Tanzanian counterpart Samia Suluhu during his state visit to Tanzania. [PCS]

A clause in Kenya’s Finance Bill 2026 could wipe out a third of Sh350 billion in regional trade, manufacturing executives have warned, even as President William Ruto  publicly advocates for a borderless East Africa.

The proposed legislation seeks to delete exemptions that for decades have allowed goods originating from East African Community (EAC) partner states to enter Kenya free of excise duty. The bill instead aims to apply the same levies to Ugandan and Tanzanian imports as those from China or Europe.