How Mbadi's duty-free rice import plan turned into free-for-all legal war

On July 28, 2025, National Treasury Cabinet Secretary John Mbadi issued a gazette notice allowing the importation of 500,000 metric tonnes of duty-free rice.

The notice has triggered a circus, with the courts being the main arena.

Cases filed in different courts tell the story of food that has turned out to be hotter than a potato.

Kenya produces about 244,000 metric tonnes of rice against an annual consumption demand of at least one million metric tonnes. This gap creates an opportunity for businesses to import rice worth an estimated Sh55 billion.

Mbadi justified the duty-free imports on the grounds that the government needed to close the market deficit.

However, opponents argue that there is sufficient rice in the country and that the import window was designed to create a glut, which would harm local farmers.

So far, the rice importation has attracted six court cases. One, filed last year, stopped the importation, while a fresh case was filed on Wednesday this week in a different court, seeking the release of imported consignments.

The drama has seen one case filed by a household goods trader struck out, while in another, the Farmers Party withdrew its petition, only for Kirinyaga Senator Kamau Murango and MCA David Mathenge to step in to salvage it.

The Farmers Party had claimed that Grade One rice retails at between Sh355 and Sh385 per kilogram for imported brands, and between Sh166 and Sh277 for locally produced rice, depending on the variety, pishori, basmati, long grain or biryani, as well as blends.

Price stabilisation

It further argued that prices are purely determined by market forces, noting that no duty-free waivers had been granted to Grade One rice importers since November last year, with rainfall patterns being predictable.

In response, Mbadi said the Cabinet had approved a framework to position the Kenya National Trading Corporation (KNTC) as the anchor of State initiatives aimed at stabilising prices of essential food commodities.

He noted that rice is the third most important cereal after maize and wheat, adding that about one million metric tonnes consumed in the country is imported mainly from India, Pakistan and Tanzania.

Mbadi said the current retail price ranges between Sh190 and Sh220 per kilogram for Grade One milled white rice, a sharp rise from last year’s average of Sh150 during the duty-free period.

He argued that Kenya needs about 1.5 million metric tonnes of rice to meet demand, adding that 95 per cent of imports are basmati rice, which he said would not significantly affect the market for locally produced pishori.

He also cited food security risks in Turkana, Marsabit, North Eastern counties and parts of the Coast.

Kerugoya High Court Judge Edward Muriithi froze the clearance of the rice consignments.

Milimani High Court Judge Chacha Mwita had earlier barred the government from importing the rice in a case filed by Japheth Kirui on October 14 last year.

Following those orders, lawyers for the Attorney General, the Kenya Bureau of Standards and the Agriculture Cabinet Secretary raised concerns that five other cases had been filed in Mombasa, Kisumu, the Milimani Commercial Court and Kerugoya over the same issue.

Justice Mwita then ordered Kirui to appear before him in person on October 30, 2025.

High seas

Kirui told the court he was born in Kuresoi but operates a household goods kiosk in Embakasi. When asked what he knew about the case, he went mute.

The AG’s lawyer, Henry Kaumba, told the court that Kirui was allegedly being used as a proxy.

“It is doubtful whether the petitioner understands the case, what has transpired and even the developments in the proceedings. It is unfortunate,” Kaumba said.

Kaumba said 250,000 metric tonnes had already been shipped, with more consignments on the high seas. He also questioned why Kirui waited 78 days after the gazette notice to file the case.

Lawyer Eric Theuri, representing the Agriculture and Food Authority, urged the court to strike out the petition.

“This is a classic case of a proxy petition, intended to exploit the robust constitutional framework that allows any person to seek redress for alleged violations,” he argued.

Kirui’s lawyer, Aggrey Kenyatta, defended his client, saying the Constitution does not limit who may file a case. He argued that the petition raised issues of national importance, including the rule of law, accountability in public finance and the protection of socio-economic rights.

Justice Mwita nonetheless struck out the case.

Back in Kerugoya, the Farmers Party had sued Mbadi, the AG and the Kenya Revenue Authority (KRA) last year, arguing that farmers in Mwea and Kirinyaga were stuck with unsold stocks and that the import window was meant to benefit tenderpreneurs linked to the government.

Heavy losses

Before the court could rule on whether to extend the orders, the party withdrew its case. Senator Murango and MCA Mathenge were then substituted as petitioners, arguing that their constituents stood to lose heavily if the rice was offloaded.

Justice Muriithi allowed them to proceed.

Last Friday, the judge ordered KRA to detain any rice consignments already in the country and halt further imports. Murango later accused the government of attempting to circumvent the court by amending the gazette notice on December 25 last year. KRA responded that the earlier notice had expired.

Even before Justice Muriithi’s ruling took effect, Victor Okoth Onunga filed a fresh case before the Constitutional Court in Nairobi.

Through lawyer Omar Faruk, Okoth sued Mbadi, Agriculture CS Mutahi Kagwe, the Ministry of Public Service, the AG and KRA. He argued that the gazette notice was intended to cushion the country against drought and food shortages.

Okoth accused the government of failing to promptly clear the rice consignments, risking starvation in North Eastern Kenya. He cited a January 9, 2026 report by the National Drought Management Authority warning that the drought situation was deteriorating and required urgent action to prevent loss of lives and livelihoods.

He claimed the lapse of timelines set by Mbadi had created uncertainty during peak demand, leading to price volatility and hardship for consumers.

Okoth further alleged that private importers who complied with Gazette Notice No. 10353 had their consignments held in bonded warehouses, subjected to unnecessary inspections or asked to pay charges that had been waived.

Proxy petitions

He wants KRA compelled to clear the shipments immediately or compensate traders.

According to him, official projections indicate a rice deficit of more than 381,000 metric tonnes by the end of January 2026, with arid and semi-arid areas worst affected.

“The shortage has led to skyrocketing prices, making basic food unaffordable for many Kenyans,” the court heard.

Okoth argued that Kenyans have a constitutional right to food and that the government must bridge the 80 per cent rice production gap.

While Murango and Mathenge want the rice kept out of the market, Okoth wants it released.

Meanwhile, Ibrahi Muhumed and Abdiaziz Moge filed a similar case in Mombasa, John Mirichu moved to the Kisumu High Court, and Tax Watch Africa also filed a petition.

Supporters of public interest litigation say such cases keep the government accountable. Critics, however, argue that hidden commercial interests are driving the litigation.

“Public interest cases have good intentions,” said Nakuru-based surgeon Gikenyi Magare.

Lawyer Nelson Havi said that while the Constitution allows any Kenyan to challenge government actions, some cases are driven purely by commercial interests.

He argued that courts are being used to advance private profit through proxies, rather than to vindicate constitutional rights.

“Courts are being inundated with cases framed as constitutional litigation, yet they are essentially commercial disputes. As a result, well-intended government decisions are being crippled,” Havi said.