The Liberal Democratic Party has accused the Kenyan government of enabling a costly monopoly in the glass industry which has exposed Kenya to an estimated Ksh 1.7B in annual fiscal losses and consequently putting over 24,000 direct and indirect jobs at risk.
In a press statement, LDP Presidential Aspirant Prof. Fred Ogola pointed out that glass processors in Kenya are forced to source their raw materials from a single supplier,KEDA Ceramics of Tanzania, at a price higher than the global market price stating that this contradicted the administration’s economic transformation promise and that this price distortion, would arguably, cripple local manufacturing and export competitiveness
This development stems from a related petition that was filed by Peter Imbayi Indaso, a businessesman and registered float glass processor against the Cabinet Secretary for Investment, Trade & Industry, the KRA, and the Attorney General. In the petition he argued that the government violated the constitutional rights to fair administrative action by failing to issue a statutory exemption enacted in the Finance Act 2025.
The Finance Act 2025 aimed at introducing a 35% excise duty on imported float glass while exempting registered local processors following a recommendation by the Industry Cabinet Secretary. However, this was not the case as in spite of the Ministry’s verification report approving ten companies for exception, none had received formal communication which resulted in cargo detention and mounting costs.
In response to the petition the High Court issued an order for the release of detained glass imports for registered processors by the Kenya Revenue Authority, temporarily offering relief in a battle over excise duty exemptions exposing a supply monopoly that has allegedly cost Kenya billions.
The interim order was granted on December 22,2025 by Justice Bahati Mwamuye. It allowed the clearance of shipments without immediate excise duty payment while simultaneously helping processors secure the amount with a bank or insurance guarantee.
The LDP warns the crisis has severe impacts for ordinary Kenyans including;
· The cost of housing and construction being artificially inflated affecting affordability
· Job losses as processors scale down operations due to high input costs
· Revenue is being exported, with an estimated KSh 1.7 billion lost in taxes, levies, and logistics income annually.
The party has called for full transparency from the government over the policy rationale of the agreement,the beneficiaries of the structure and safeguards to protect the Kenyan industry and public revenue.
Prof. Ogala linked the issue to the lack of political accountability warning that economic mismanagement could impact the public’s opinion affecting future electoral prospects. “For workers losing jobs today, economic pain is immediate—not a 2027 campaign issue,” he stated.
The LDP claims implementation has been “frustrated by administrative failures” at the Ministry of Industry and the Kenya Revenue Authority.The High Court’s intervention is already underway with the ministry being directed to respond to a case and allow the release of the exempted cargo under bond.
For now the Liberal Democratic Party’s final call is for the restoration of fair competition, protection of jobs and ensuring the legal implementation of existing economic policies to protect the industrial future of Kenya
