- The judge said the court is prevented from determining the matter because the legislative process is incomplete.
- LSK filed the case in court terming the decision by the Commissioner General, of Kenya Revenue Authority as unconstitutional and unlawful.
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The High Court has declined to issue orders stopping the proposed hike in excise stamps for various products.
Justice Hedwig Ong'undi dismissed the matter filed by the Law Society of Kenya on the grounds it was done so prematurely.
"With an incomplete legislative process, it's not prudent for this court to exercise its mandate over this matter," Ong'undi said.
The judge said that in the event the state gives effect to the challenged regulations before w the exhaustion of the legislative process, the Petitioner (LSK) will be at liberty to move the court.
The Law Society of Kenya filed the case in court terming the decision by the Commissioner General, of Kenya Revenue Authority as unconstitutional and unlawful.
It said the 'illegal adjusted tax rates' threaten the survival of the majority of manufacturers and distributors of consumable excisable goods.
KRA on January 17 enacted the Excise Duty (Excise Goods Management System) (Amendment) Regulations, 2023.
The adjustment if allowed would increase the stamps of Beer from Sh1.5 to Sh3 per stamp. Wines including fortified ones, spirits exceeding 10 per cent from Sh2.8 to Sh5.0 per stamp.
The adjustments will also affect bottled water, juices, cosmetics, tobacco and nicotine products.
LSK had asked the court to stop KRA from enforcing the regulations.
"The impugned adjusted rates of excise stamp will also widen the excise duty tax rate in the East African Community by continuously disadvantaging the manufacturers in Kenya against their African Counterparts," LSK said.
The implications of KRA's move according to the court documents will see manufacturers in Kenya continue to loosen their grip on the domestic market through increased competition from East African Community Partner States and the growth of illicit trade, fueled by the increasing tax differentials.
KRA and the other respondents had opposed the grant of orders sought on grounds that the challenged regulations are still in the draft stage.
This, in their opinion, made the application by LSK premature.