Court stops implementation of KRA’s EGM system

The High Court quashed the supply, installation, and maintenance of the Excisable Goods Management System (EGMS), also referred to as EGM.

The EGM is a track and trace system implemented by the Kenya Revenue Authority (KRA) to monitor and account for excisable goods like alcohol, cigarettes, and bottled water.

The court found that the procurement process was not transparent and violated the Constitution, leading to the nullification of the entire decision concerning the system’s supply, installation and maintenance.

Despite the ruling, the court granted a 30-day stay of the judgment, effective November 27, 2025.

Justice Bahati Mwamuye, in delivering the decision, stated that the EGMS procurement process was irrational, violated public procurement principles, and was fundamentally flawed due to its lack of transparency.

Meanwhile, the Court delivered a major victory to Kenyans after Judge Mwamuye barred the government from implementing the 10 percent import duty on crude oil, declaring the decision unconstitutional, null, and void.

The court ruled that the government failed to engage the public and Parliament in a matter that directly affects the price of essential commodities and the lives of ordinary citizens.

Justice Mwamuye noted that any decision by the government to apply, stay, or adopt measures under the East African Community (EAC) Common Market framework must undergo proper public participation and parliamentary scrutiny Failure to do so, he said, violates the Constitution.

The court further stopped the government from enforcing the EAC Gazette Notice dated June 30, 2024, which had introduced the 10 percent import duty on crude oil entering Kenya.

The ruling now blocks the implementation of the levy, which had contributed to the increase in fuel and related commodity prices.