Dar es Salaam — Kioo Limited, the largest glass manufacturer in East and Central Africa, has expressed concern over Kenya's proposed 35 per cent excise duty on glass bottles imported from East African Community (EAC) member states.The company warns that this could seriously affect its exports, disrupt regional trade, and increase manufacturing costs.

Kioo's General Manager, Mr Vineet Verma, stated that they have formally raised their complaint to Tanzanian ministers in charge of Industry, Finance, Planning, and Foreign Affairs.

The proposed amendment would remove the current EAC preferential treatment for glass bottles, making them more expensive for Kenyan buyers and reducing their competitiveness against locally made glass.

Kioo supplies a significant volume of glass to Kenya, bridging a supply deficit in a market with annual demand of 120,000 metric tonnes but local production of only 63,000 tonnes.Around 32 per cent of Kioo's exports go to Kenya, and the new excise duty could impose an extra cost of about 7.7 million US dollars on imports valued at 22 million US dollars.The company also highlighted previous legal victories in the East African Court of Justice that protected their rights under the EAC treaty.

Kioo has invested over 125 million US dollars in expanding its operations and employs more than 900 people, supporting regional manufacturing and trade supply chains.The new tax threatens both business and regional economic integration.