The Kenyan government has been accused of facilitating a monopoly in the glass manufacturing sector, a move that critics say is costing the country billions of shillings annually and threatening more than 24,000 direct and indirect jobs.
The Liberal Democratic Party (LDP) claims that policy failures in the glass industry have exposed Kenya to an estimated KSh 1.7 billion in annual fiscal losses, while undermining local manufacturers and export competitiveness.
Speaking during a press briefing, LDP presidential aspirant Prof. Fred Ogola alleged that local glass processors are being compelled to source raw materials from a single supplier, KEDA Ceramics of Tanzania, at prices higher than the global market rate.
“This price distortion contradicts the government’s promise of economic transformation and risks crippling local manufacturing,” Prof. Ogola said, warning that the policy environment discourages industrial growth and investment.
Legal Battle Over Excise Duty Exemptions
The controversy follows a petition filed by businessman and registered float glass processor Peter Imbayi Indaso against the Cabinet Secretary for Investment, Trade and Industry, the Kenya Revenue Authority (KRA), and the Attorney General.
In the petition, Indaso argues that the government violated constitutional rights to fair administrative action by failing to implement exemptions provided under the Finance Act 2025.
The Act introduced a 35 percent excise duty on imported float glass, while exempting registered local processors, following recommendations from the Industry Cabinet Secretary. However, despite a ministry verification report approving ten companies for exemption, none reportedly received formal communication, resulting in detained cargo and mounting storage and logistics costs.
High Court Intervenes
On December 22, 2025, the High Court intervened, with Justice Bahati Mwamuye issuing interim orders directing KRA to release detained glass imports for registered processors.
The ruling allowed the clearance of shipments without immediate excise duty payment, provided processors secured the amount through a bank or insurance guarantee. The court order offered temporary relief while exposing what the LDP describes as a supply monopoly that has already cost Kenya billions.
Impact on Consumers and Workers
According to the LDP, the crisis has far-reaching consequences for ordinary Kenyans, including:
- Artificial inflation of housing and construction costs
- Potential job losses as processors scale down operations
- Export of revenue, with an estimated KSh 1.7 billion lost annually in taxes, levies, and logistics income
The party says the situation has been worsened by what it terms administrative failures at both the Ministry of Industry and the Kenya Revenue Authority.
Calls for Transparency and Accountability
The LDP has called on the government to fully disclose the policy rationale behind the current supply structure, identify its beneficiaries, and outline safeguards to protect local industry and public revenue.
Prof. Ogola linked the issue to broader concerns around political accountability, warning that economic mismanagement has immediate consequences for citizens.
“For workers losing jobs today, economic pain is immediate — not a 2027 campaign issue,” he said.
As the case proceeds, the High Court has directed the ministry to respond formally while allowing the release of exempted cargo under bond. The Liberal Democratic Party says its ultimate demand is the restoration of fair competition, protection of jobs, and the lawful implementation of existing economic policies to safeguard Kenya’s industrial future.
