On the 20th of July, 2026, Goodwill Tanzania Ceramic Co. Ltd, of Tanzania, became the latest proponent of a flourishing business protest against Kenya’s new tariffs system, forewarning about the consequences of this decision for regional integration, along with the displacement of Tanzanian products from one of their biggest markets. The company highlighted how the Kenyan Finance Act affects businesses in Dar es Salaam, stating that this law creates uncertainty that is essential for manufacturers to operate, invest, and plan within the East African Community, despite recent promises from officials to remove current trade barriers by June 30, 2026. The statement comes shortly after Kioo Limited, a glass production firm, contested Kenya’s idea to introduce a 35 per cent excise duty on deliveries of glass bottles coming from countries belonging to the EAC.
The issue at hand is how Kenya has changed its taxation of imported ceramics. Under the new tax law, ceramic tiles are subject to an excise duty amounting to either five per cent of their excisable value or KSh50 per kilogram. Meanwhile, sanitary ware is taxed based on its excisable value rather than its customs value. Justin Xie, a business manager of the world’s largest ceramics company, states that the new taxation policies significantly increase the cost of accessing the Kenyan market and create uncertainty in customs clearance because the basis for taxes is unpredictable. In some instances, he noted, the duty levied can surpass the price at which products leave factories, resulting in commercially untenable exports.
What’s at stake is much greater than the balance sheet of one company. The article states that the amount of trade exchanged between Tanzania and Kenya is approximately $1 billion annually and that Kenya is among the largest customers for the export of ceramic goods from Tanzania. Goodwill Tanzania Ceramic Co. Ltd. pointed out that if the exports are adversely affected, the disastrous consequences would exceed those areas of the industry that are directly associated with the production process. The company also stated that it would treat the issue as a test for the EAC Common Market, as it is not seeking any privileges but, rather, a fair implementation of the agreements reached by members of the EAC.
The government of Tanzania says that it has already begun taking some actions regarding the issue at hand. Judith Kapinga, Minister for Industry and Trade, stated that Dar es Salaam is contacting Nairobi through the mechanisms of the EAC. She also noted that the conflict extends beyond ceramics to include other Tanzanian exports. to ceramics but also to other exports from Tanzania. Additionally, Tanzania is responding in kind by introducing similar initiatives through its Finance Act, which came into effect this month. In spite of this, Tanzania still prefers discussing issues to confrontation.
