EAC court halts Tanzania match tax in win for Kenyan firm
The East African Court of Justice (EACJ) has temporarily stopped the Tanzania Revenue Authority (TRA) from enforcing a new excise duty on safety matches imported from Kenya, pending the hearing and determination of a case filed by Kenyan manufacturer Match Masters Limited.
In its ruling, the regional court suspended the implementation of a Tsh400 (approximately Ksh19.37) excise tax per kilogram imposed under Tanzania’s Finance Act, 2025, saying the levy posed a significant threat to the company’s operations in the Tanzanian market.
The court noted that the safety matches business operates in a highly price-sensitive fast-moving consumer goods (FMCG) sector, where a single box of matches retails at around Tsh100. Judges observed that the additional tax created a real danger of permanent loss of market share for Match Masters, harm that could not easily be reversed even if the company eventually succeeds in the main case.
On the other hand, the court said the temporary suspension of the levy would only lead to a quantifiable delay in tax revenue collection for Tanzania.
Match Masters, a Kiambu-based manufacturer that has produced safety matches for more than 25 years under brands such as Kasuku, Tinga and Paka, argued that the excise duty amounted to discriminatory internal taxation and a disguised restriction on trade within the East African Community (EAC).
The company told the court that the tax had already caused immediate financial strain, including a complete halt in sales in July 2025, unsustainable price cuts to absorb the duty, pressure from distributors and the risk of being permanently pushed out of the Tanzanian market.
Tanzania’s Attorney General defended the levy, arguing that ongoing harmonisation of domestic tax policies among EAC member states under Article 32 of the EAC Common Market Protocol meant the tax could not be considered discriminatory.
However, the court held that while tax harmonisation may form part of Tanzania’s defence during the full hearing, it does not eliminate the existence of serious legal questions requiring determination.
“Public interest in Treaty compliance, non-discrimination, and the integrity of the Common Market strongly favors relief,” the court ruled.
The judges further observed that the dispute touches on key principles underpinning the EAC Customs Union and Common Market protocols, including non-discrimination, national treatment and the free movement of goods across partner states.
The ruling has been welcomed by supporters of regional economic integration, who argue that fair cross-border trade protections are essential not only for manufacturers such as Match Masters but also for small businesses and communities that depend on regional commerce.
The temporary orders will remain in force as the EACJ hears and determines the substantive case challenging the legality of the Tanzanian excise duty.
