Kenyan firm accuses Tanzania of defying EACJ order barring excise duty on safety matches

The EACJ issued an interim injunction on March 30, 2026, followed by a formal order on April 30, directing Tanzanian authorities to halt the enforcement, collection, or imposition of an excise duty of Tsh 400 (approx. Ksh.20) per kilogram on safety matches manufactured in Kenya and imported into Tanzania as intra-EAC goods.

"Pending the hearing and final determination of Reference No. 39 of 2025, the Respondent, its agents and the Tanzania Revenue Authority are hereby restrained from levying, collecting, or enforcing the excise duty of Tsh 400 per kilogram imposed by section 34(u) of the Finance Act, No.11 of 2025 (as inserted into the Fourth Schedule of the Excise (Management and Tariff) Act, Cap. 147) on safety matches (HS Code 3605.00.00) manufactured by the Applicant in Kenya and imported into the United Republic of Tanzania as intra-EAC goods," reads the court order.

Despite the court directive, Match Masters Limited alleges that Tanzanian authorities continue to impose the excise duty at border points, effectively disregarding the EACJ ruling. The company further claims that customs officials have, in some instances, declined to acknowledge or act on the court order when it is presented at entry points.

The dispute stems from Tanzania’s decision to introduce an excise levy of Tsh 400 per kilogram on imported safety matches while exempting locally manufactured products. 

Match Masters argues that the measure is discriminatory and violates the East African Community’s Customs Union and Common Market protocols, which guarantee free movement of goods and prohibit unequal treatment of intra-regional trade.

According to the company, the continued enforcement of the levy undermines the authority of the EACJ and raises broader concerns about compliance with regional judicial decisions.

“The continued enforcement is more than a trade dispute. It is a direct challenge to the EACJ’s authority and a stress test of whether EAC institutions carry any real weight when a member state decides not to comply,” the company stated.

At the centre of the case is the Tanzania Revenue Authority’s application of the levy on Kenyan-origin safety matches at the point of entry, which Match Masters contends amounts to unjustified reclassification and discriminatory taxation against intra-EAC goods.