DAR ES SALAAM: GOODWILL (Tanzania) Ceramics has urged the government to engage Kenya after Nairobi imposed a 5 per cent excise duty on ceramic imports, warning the measure threatens exports, regional supply chains and manufacturing investment.
Goodwill (Tanzania) Ceramic Co. Ltd Business Manager Justin Xie said the company also asked the East African Community (EAC) to facilitate discussions, arguing the new tax measures could undermine the bloc’s common market objectives if left unresolved. The appeal follows Kenya’s enactment of the Finance Act 2026, which introduced a new excise duty regime on imported ceramic tiles and sanitaryware.
“The changes could substantially increase the cost of exporting Tanzanian ceramic products to Kenya, one of the country’s largest regional markets, while creating additional uncertainty for manufacturers trading within the EAC.
“We believe the issue can be resolved through constructive dialogue between the two governments and within the framework of the East African Community. Our concern is to ensure that regional trade remains open, predictable and consistent with the commitments agreed by all partner states,” Mr Xie said.
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Under the new tax regime, imported ceramic tiles will attract an excise duty of 5 per cent of the excisable value or 50 KSh per kilogramme, whichever is higher, replacing the previous system based on customs value or square metres. He said the tax base for sanitaryware has also shifted from customs value to excisable value, a move the company says increases uncertainty during customs valuation and clearance.
Mr Xie said the revised tax structure could significantly increase the cost of exporting ceramic tiles to Kenya. Calculated on a weight basis, the excise duty could exceed the factory selling price by more than two times, making exports commercially unviable for many Tanzanian manufacturers.
He also said replacing customs value with excisable value gives customs authorities greater discretion in determining taxable values, potentially increasing compliance costs and creating additional barriers to crossborder trade.
“Kenya is one of Tanzania’s most important export destinations for ceramic products, making the policy change a significant concern for manufacturers that have invested heavily in expanding production for regional markets,” he noted.
If the measures remain unchanged, Mr Xie warned, manufacturers could face declining exports, reduced factory production and lower capacity utilisation. That, in turn, could put pressure on employment across the manufacturing value chain, weaken investor confidence in exportoriented industries and slow Tanzania’s industrialisation agenda.
“As manufacturers, we have invested heavily in the country, created local employment, transferred technology and contributed to government revenue. We support fair competition, but competition must take place under transparent and predictable rules that are consistent with regional trade commitments,” Mr Xie said.
He said the company is not seeking preferential treatment but the consistent application of trade rules agreed upon by EAC partner states. Confidence in regional economic integration, he added, depends on businesses knowing that common market principles will be implemented fairly and predictably across the bloc.
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Further, Mr Xie called on the government to engage Kenyan authorities and relevant EAC institutions to seek an amicable solution that preserves regional trade while supporting industrial development on both sides of the border.
“A strong regional market benefits producers, consumers and investors alike. Through dialogue and cooperation, we believe East Africa can preserve the open, rules-based trading environment that is essential for sustainable industrial growth,” he said.
He said his company, one of Tanzania’s leading manufacturers of ceramic tiles and sanitary ware, has created thousands of direct and indirect jobs, strengthened local supply chains, and contributed significantly to the countrys industrial development.