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Kenyan matchbox maker sues Tanzania over new import tax
The Kenyan government recently formally objected to Tanzania's new business rules and tax measures, labelling them as discriminatory and an obstruction to economic integration.
Kenyan-based safety matches manufacturer Match Masters Limited has sued Tanzania for introducing an import tax that has made it difficult to compete against rivals in the neighbouring country.
Match Masters has filed a suit at the East Africa Court of Justice (EACJ) seeking a reversal of the tax, arguing that the new levy is in breach of the regional common market rules.
It is hinging the case on rules that prohibit discriminatory measures against goods from partner states within the EAC customs union.
The manufacturer says the imposition of the tax has increased the price of its matches by Sh103.52 (Tsh2,000) per carton of 1,000 match boxes, making the product less affordable for customers in Tanzania.
Tanzania’s Finance Act, 2025 lifted a three-year freeze on excise duty changes and slapped a Sh20.70 (Tsh400) excise duty per kilogramme of imported match boxes.
This has targeted a variety of imports with items such as crisps, ice cream, sausages, soap, kitchenware, margarine, fireworks and furniture attracting higher duty.
In the filing at the Arusha court, Match Masters argues that the new duty of imported matches has created a disguised customs barrier contravening articles of the EAC Treaty, terming it discriminatory.
“For 23 years, we have proudly supplied affordable matches to the people of Tanzania, and we are deeply saddened and shocked that this might come to an end because of a discriminatory levy that has been imposed for unclear reasons,” said Managing Director Kushal Shah.
“The group most affected by this price increase are low-income citizens who will have to turn to other less quality brands to afford lighting a stove or a fire.”
The suit is part of a wider fallout between Kenya and Tanzania which has gone on for decades with both countries being dimmed to engage in unfair trade practices in specific instances.
The Kenyan government recently formally objected to Tanzania's new business rules and tax measures, labelling them as discriminatory and an obstruction to economic integration.
Tanzania’s Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, restricts non-citizens from participating in 15 business sectors including salons, tour guiding, mobile-money transfers, electronics repair and micro and small industry ownership.
The constant tiffs between the trading partners are despite a high Sh125.9 billion total trade value between the pair as of the end of last year.
Kenya enjoyed a narrow trade balance with Tanzania, exporting goods valued at Sh67.2 billion against imports of a lower Sh58.7 billion in 2024.
The government of Kenya asked Tanzania to rethink the new measures and noted that the actions undermine the foundational principles of the EAC common market protocol.
“These measures have raised the cost of doing business by up to 25 percent for Kenyan traders, with some sectors nearly wiped out, rendering Kenya simply a recipient of goods,” said Trade and Industry Cabinet Secretary Lee Kinyanjui.
“We are appealing for a rethink. Kenya is home to many Tanzanians who live and work here (in Kenya) harmoniously. We are simply asking for the same gesture to be reciprocated.”
Kenya has opted to solve the trade concerns via diplomatic means in its push for Tanzania to operate within the spirit of the EAC, which calls for the free flow of goods, capital and workers.
The talks asked the EAC Secretariat to compile a list of tax measures inconsistent with the Customs Union Protocol by the end of last month.
The Secretariat was also to harmonize the definitions of imports and exports as of June 30.
The Arusha-based based has previously found itself rocked by similar matters in the past, including a case filed by a Tanzanian glass manufacturer, Kioo, which challenged Kenya’s imposition of a 25 percent excise duty on imported glass bottles in 2020.
The EACJ granted an interim order halting the tax and finding that the case raised serious issues of irreparable harm and a potential violation of regional trading laws.
Match Masters has warned that it could scale down production in the wake of the new tax, triggering job cuts.
“Many livelihoods will be directly or indirectly and immediately affected by the levy, including suffering loss of healthcare access and food insecurity. As the situation worsens, jobs in Tanzania are also at risk, particularly the vast distribution and logistics networks used by Match Masters to deliver their product all over the country,” the firm said.
