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Court slams brakes on tax-free rice imports
What you need to know:
- Justice Edward Muriithi, sitting at the High Court in Kerugoya, issued a conservatory order on Monday stopping the importation pending the hearing of the application filed by the political party.
- Importation was to continue until December 31, 2025, with the intention to cushion consumers against rising cost of food.
Government's plan to import 500,000 tonnes of Grade 1 milled white rice has been suspended by the High Court following a petition by the Farmers Party, which claims the importation is harmful to local farmers and traders.
Justice Edward Muriithi, sitting at the High Court in Kerugoya, issued a conservatory order on Monday stopping the importation pending the hearing of the application filed by the political outfit.
The interim order suspends implementation of the gazette notices issued by the Cabinet Secretaries for the National Treasury (John Mbadi) and Agriculture (Mutahi Kagwe) on July 28, 2025, approving duty free importation of 500,000 tonnes of Grade 1 rice.
Importation was to continue until December 31, 2025, with the intention to cushion consumers against rising cost of food, as well as easing pressure on the local market.
Justice Muriithi certified the case as urgent and directed the petitioners to furnish the respondents with court papers ahead of hearing scheduled on Thursday, August 14.
The respondents include the two Cabinet Secretaries, Agriculture and Food Authority, Commissioner for Customs & Border Control, the Attorney-General and the Kenya National Trading Corporation (KNTC).
'Detrimental to local players'
The petitioner contends that the importation would be detrimental to local farmers, retailers and suppliers, who have the commodity in their stores and are at risk of suffering financial losses if the tax free rice enters the market.
It argues that the importation was sanctioned without prior notice, adding that this amounts to illegal control and stabilisation of food products in the absence of an emergency.
Another claim is that this was contrary to the provisions of the Price Control (Essential Commodities) Act, 2011 and the East African Community Customs Management Act (EACCMA).
The petitioner also disputes the government’s explanation that the duty free importation was aimed to address an “anticipated shortfall of Grade 1 rice in the Kenyan market”, which could not be satisfied by the existing local production.
“This is not true because the 2nd and 3rd respondents (CSs for Treasury and Agriculture) cannot claim famine when they have not completely mopped up and/or purchased local harvest as alleged at the paddy for three seasons,” says the petitioner.
However, it did not provide specific figures on local reserves of rice.
“Unprocessed rice is at the rice paddy. The market has an abundant supply of Grade 1 rice which is on sale both from the farmer as well as the local importer. Unless the orders are urgently granted, the price of Grade 1 rice will as an automatic consequence of the 500,000MT fall and become a loss for the farmer, importer and retailer,” the petitioner’s lawyer Alex Musyoki argued.
He stated that the immediate importation without notice of duty free rice has and would continue shooting down the cost per kilogramme of rice at the shop’s counter to the detriment of farmers.
The petitioner further contended that the importation may render harvests covering July 2024 to July 2025 a loss and affect the livelihoods of thousands of farmers and traders.
The petitioner warned that the government’s action would cause unnecessary and imprudent use of public funds to not only import duty-free rice through the KNTC in favour of a few companies but also the denial of much needed revenue.
The petition is pending hearing and determination.
