The government has faced a major legal defeat after the High Court declared the fees charged on coal imports by the Kenya Plant Health Inspectorate Service (Kephis) illegal and without constitutional backing.
The charges, which came into effect on December 1, 2024, required importers to pay 50 cents per kilogramme of coal, an increase from the previous rate of 16 cents, as well as Sh500 for every phytosanitary certificate issued.
In its ruling in Nairobi, the court nullified the fee hike and barred the government from continuing to collect any such charges, citing a lack of legal authority and failure to follow required procedures.
"The decision by the respondents to levy phytosanitary inspection fees on coal imports has no legal basis and violates the Constitution," the court stated in response to a petition filed by Shaz Ventures Limited, Beyond Continents Logistics Limited, and other coal importers. The judge highlighted that the fees were imposed without statutory backing or consultation with the public, which is required before such measures can take effect.
The court issued a clear order preventing the state from charging, demanding, or collecting phytosanitary inspection fees on coal imports, effectively ending the practice. The importers had argued that coal is neither a plant nor a plant product, and therefore does not fall under Kephis’ mandate.
Court records show that the petitioners considered the fees arbitrary, noting that they substantially increased import costs and subjected businesses to unpredictable regulatory actions. They asked the court to nullify the July 2024 fee increase, declare the collection of the charges illegal, and issue a permanent ban on future levies of this kind.
"The respondents acted beyond their statutory mandate by attempting to regulate coal imports through phytosanitary fees," the petitioners said, describing the charges as "an unlawful tax disguised as an inspection charge."
The court sided with the importers, stating that Kephis had failed to satisfy constitutional standards for legality and fairness. According to the ruling, Kephis’ powers under the Plant Protection Act cover only plants, plant products, and regulated articles capable of spreading pests—categories that clearly exclude coal.
"The respondents failed to demonstrate how coal, a mineral product, poses a phytosanitary risk requiring inspection under existing laws," the judge concluded.
