The Law Society Of Kenya (LSK) has challenged President Ruto’s plan to allow Kenya National Trading Corporation to import duty-free cooking oil.
The Kenya Law Society claimed that it would be devastating to local producers and result in massive job losses.
LSK estimates that if the imports go forward, the Kenya Revenue Authority will lose close to Sh52 billion in tax.
“In effect, the duty-free importation of finished edible oils into the Kenyan market will drive edible oil manufacturers in Kenya out of business,” LSK states.
According to LSK lawyer Denis Olonde, the argument is that products made locally would not receive the same tax treatment as imports.
“Their products, which are not being given the same tax treatment, will be more expensive and, as such, cannot compete with the prices of the products supplied by the KNTC,” Olonde stated in his supporting affidavit.
As a result, LSK is asking the court to invalidate the National Treasury letter dated January 20, 2023, which authorized the duty-free importation of 125,000 Tonnes of oil for a year.
LSK also asked Court to overturn the Kenya Revenue Authority’s directive dated February 14, 2023, which facilitates duty-free clearance.
