Kenyan manufacturer sues Tanzania at East Africa Court of Justice over "discriminatory" tax
Match Masters Limited, filed the case arguing that the excise duty introduced by Tanzania violates the EAC Treaty and amounts to protectionism.
A Kenyan safety matches manufacturer has filed a case at the East Africa Court of Justice (EACJ) challenging sections of Tanzania's Finance Act, 2025, arguing that the law imposes discriminatory excise duties on goods originating from other East African Community (EAC) member states.
Match Masters Limited, the company behind popular match brands Kifaru, Kasuku, Tinga and Paka, filed the case arguing that the excise duty introduced by Tanzania violates the EAC Treaty and amounts to protectionism.
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Through its Managing Director, Kushal Shah, the firm has argued to the regional court that the Finance Act imposes a duty of TSh400 (approximately Sh21) per kilo on imported matches, translating to an additional TSh2,000 (about Sh103) per carton of 1,000 match boxes.
The company contends that the sharp increase has overnight made its products significantly more expensive in the Tanzanian market.
"For 23 years, we have supplied high-quality and affordable matches to the people of Tanzania. We are deeply saddened and shocked that this might come to an end because of a discriminatory levy imposed for unclear reasons," Shah stated in supporting affidavits.
The suit further points to Tanzania's wider legislative changes, including a 10 per cent increase in duties on a range of imported goods and the recently gazetted Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025. That order prohibits foreign nationals from trading in 15 sectors, including the ownership and running of small and medium-sized enterprises (SMEs).
Match Masters argues that these measures are designed to exclude Kenyan manufacturers and entrepreneurs from the Tanzanian market, in violation of the free trade and equal treatment principles under the EAC Charter.
Tanzania, however, has defended the laws, saying they are aimed at protecting and developing local industries.
Officials in Dodoma maintain that the government has the sovereign right to enact fiscal measures that promote domestic production and employment.
The EACJ is expected to issue directions in the matter as Tanzania is yet to file its response.
If successful, Match Masters wants the provisions quashed and Tanzania compelled to align its tax laws with regional trade obligations.
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