The Liberal Democratic Party has accused the Kenyan government of facilitating a monopoly in the glass industry, a move it says has exposed the country to an estimated KSh 1.7 billion in annual fiscal losses and placed more than 24,000 direct and indirect jobs at risk.
In a press statement, LDP presidential aspirant Prof. Fred Ogola said glass processors in Kenya are compelled to source raw materials from a single supplier, KEDA Ceramics of Tanzania, at prices above global market rates. He said this arrangement contradicts the administration’s stated economic transformation agenda and has distorted input costs in a manner likely to weaken local manufacturing and export competitiveness.
The concerns arise from a petition filed by businessman and registered float glass processor Peter Imbayi Indaso against the Cabinet Secretary for Investment, Trade and Industry, the Kenya Revenue Authority, and the Attorney General. In the petition, Indaso argues the government violated the constitutional right to fair administrative action by failing to implement a statutory exemption provided for under the Finance Act 2025.
The Finance Act 2025 introduced a 35 percent excise duty on imported float glass while exempting registered local processors, following a recommendation by the Industry Cabinet Secretary. Despite a ministry verification report approving ten companies for exemption, no formal exemption notices were issued. This resulted in cargo detention at ports and rising storage and demurrage costs.
In response, the High Court ordered the Kenya Revenue Authority to release detained glass imports belonging to registered processors. The ruling offered temporary relief in the dispute over excise duty exemptions and brought renewed attention to the alleged supply monopoly, which the LDP says has cost the country billions.
The interim order was issued on December 22, 2025, by Justice Bahati Mwamuye. It allowed the clearance of shipments without immediate payment of excise duty, subject to the provision of a bank or insurance guarantee.
The LDP warned the situation has direct consequences for ordinary Kenyans, including higher housing and construction costs due to inflated glass prices, job losses as processors reduce operations, and capital outflows through foregone taxes, levies, and logistics income estimated at KSh 1.7 billion each year.
The party has called for full disclosure by the government on the policy basis of the arrangement, the beneficiaries involved, and the safeguards in place to protect domestic industry and public revenue.
Prof. Ogola linked the issue to political accountability, warning that economic missteps carry immediate social costs. He said workers losing jobs face hardship now, not during future election campaigns.
The LDP maintains the exemptions have been stalled by administrative failures within the Ministry of Industry and the Kenya Revenue Authority. Following the High Court’s intervention, the ministry has been directed to respond to the case and allow the release of approved cargo under bond.
The party has urged the government to restore fair competition, protect jobs, and enforce existing economic laws to safeguard Kenya’s industrial future.
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