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Kenya recently enacted the Business Law (Amendment) Act, 2020 which amended the Excise Duty Act, 2015 (the Excise Duty Act) by imposing excise duty on imported glass bottles (excluding glass bottles for packaging pharmaceutical products) at a rate of 25%, with effect from 18 March 2020. This amendment will result in an increase in the cost of imported glass bottles as compared to glass bottles which are locally manufactured in Kenya.
- Status note
TheRepublic of Kenya issued an administrative note to implement the Court injunction on the Kioo case and the NTB was resolved .
- Progress update note
1.During the RMC meeting held on 1 September 2020, the Republic of Kenya informed the meeting that they will consult and report back.Tanzania informed the meeting that this NTB was reported in the system and Tanzania request interim measures. Tanzania traders should be allowed to transfer KIOO to Kenya pending the finalisation of Consultations
2.During the Sectoral Committee on Trade, Kenya reported that the company has sued the Government of Kenya and there is a pending Court (EACJ) case on the NTB reported by KIOO Tanzania and urged that this NTB should not be deliberated on but rather wait for court judgment.The Sectoral Committee on Trade noted that the matter is in Court and the United Republic of Tanzania and the Republic of Kenya will be officially notified on the same.
3.The United Republic of Tanzania informed the SCTIFI meeting held in September 2020, that the Republic of Kenya has contravened the EAC CMP and the EAC CUP and hence increased the cost of doing business. The NTB should be dealt with separately from the Court Case and the Republic of Kenya should respond to the letters and also implement the SCTIFI Directive.During the SCTIFI the Republic of Kenya informed that the issue is in Court and Kenya will respond once the Court Case has been concluded.
4. The Kenya NMC meeting during their NMC of March 2021; was of the view that the two Partner States can engage bilaterally to address the matter without necessarily continuing with Court proceedings. The meeting, therefore, recommended that the United Republic of Tanzania initiates the process to settle the KIOO NTB with the Republic of Kenya, out of Court.
5. During the Tanzania NMC meeting held in April 2021, the meeting was informed that the EACJ had issued an Injunction Order in November 2020 (attached) where an Interim Order was granted. Since then the Republic of Kenya has not honored the Court injunction Order. 1. The Republic of Kenya should honor the Court Order; 2. The out-of-court request by Kenya should be preceded by the goodwill of implementing the Court Injunction Order then other negotiations can follow; and 3. The EAC Secretariat was requested to write and submit the Order officially to Kenya.
6.The RMC meeting held in Mai 2021 was informed that the Republic of Kenya shall consult and revert during SCTIFI
- Policy or regulatory NTB
Kenya: (Government institution)
- Reporting Country or Region
- Country specific trade issue
- Date of incident
- Date of resolution
- Product Description
- Total value
- Date reported