High Court freezes Cabinet decision allowing importation of 500,000 tonnes of duty-free rice

The High Court has temporarily halted a government directive allowing the duty-free importation of 500,000 metric tonnes of Grade 1 rice, pending the hearing of a petition filed by local farmers.

Justice Edward Muriithi issued a conservatory order suspending a gazette notice dated July 28, 2025, which had approved a tax waiver on rice imports until December 31, 2025. The court certified the farmers’ application as urgent and scheduled the case for mention on August 14, 2025.

In the suit, filed through Simon Chege Kamangu, the farmers seek to block the directive, arguing it lacked public participation, violates constitutional rights, and will unfairly depress market prices to the detriment of local producers and importers.

According to court documents, the government framed the importation as a measure to cushion Kenyans against food shortages caused by global supply chain disruptions. However, farmers claim it is actually a “price control” mechanism.

They argue that a sudden influx of duty-free rice will cause the price of locally grown Grade 1 rice—both at the paddy and retail levels—to “tank,” wiping out the economic value of their harvests.

'No rice shortage'

“There is currently no rice shortage in the country following recent harvests and existing private reserves, stating that the government has not exhausted local supplies before opting for imports,” the farmers claim.

They further note that routine taxed imports of Grade 1 rice have not faced any global disruption in supply or pricing.

The petition also accuses the government of acting outside the law by invoking provisions of the East African Community Customs Management Act (EACCMA) meant for emergency relief goods. Farmers argue that no national disaster or emergency has been declared to justify such waivers.

Section 114(2) of the EACCMA, they point out, only exempts goods imported for emergency use in specific areas affected by natural disasters—conditions that they say do not currently exist in Kenya.

The suit alleges that the Cabinet decision violates Articles 10, 26, 27, 40, 43, 47, 114, 118, and 210 of the Constitution, along with the Fair Administrative Action Act and the Price Control (Essential Commodities) Act.

Economic rights

The farmers say their right to property under Article 40 and their economic rights under Article 43 are being undermined because the imports will directly reduce the value of locally produced rice. They also cite Article 27, arguing that the move unfairly favours the Kenya National Trading Corporation (KNTC), the designated importer.

Additionally, they claim there was no meaningful public participation. Consultations, they say, were confined to meetings between government agencies, excluding key stakeholders such as farmer associations and private sector players in the rice trade.

The petition draws parallels with the Auditor General’s Special Audit Report on Edible Oils at KNTC dated July 2024, alleging that the current rice import plan mirrors a “modus operandi” that previously benefited select entities at the expense of market fairness.

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The farmers have urged the court to maintain the suspension until their petition is fully heard and determined, warning that once the rice arrives in the country, the alleged illegality will be irreversible.

The Cabinet Secretaries for National Treasury and Planning, Agriculture and Livestock Development, the Agriculture and Food Authority, the Commissioner for Customs & Border Control, the Attorney General, and KNTC have been listed as respondents.