Farmers Choice Limited has lost a tax appeal against the Kenya Revenue Authority after the Tax Appeals Tribunal struck out its case for missing the statutory filing deadline. The ruling, delivered this week, upholds KRA’s higher tariff classification on an imported ingredient used in the production of sausages and other processed meats.
The gate to Farmers Choice. The company has lost a tax appeal over the classification of an imported sausage ingredient.
The Tribunal upheld KRA’s April 10, 2025 review decision, although it did not determine whether the disputed taxes were actually due.
What the Dispute Was About
The case started with two consignments of an ingredient known as PRO FIT 1:50 that arrived in Kenya on 15 October 2024. Farmers Choice declared the goods under a general “food preparation” tariff category, which attracts lower duties.
KRA disagreed and reclassified the product under “preparations used to manufacture food and beverages.” This higher category attracts steeper customs duties and related taxes. The authority then issued tax demands of KSh 2.3 million and KSh 1 million on the two consignments. One of the demands was later withdrawn.
Farmers Choice applied for an internal review. On 10 April 2025, KRA upheld its reclassification decision. Under the East African Community Customs Management Act (EACCMA) 2004, the company had a strict 45-day window to file an appeal at the Tax Appeals Tribunal.
Instead of filing immediately, Farmers Choice continued negotiations with KRA. It only lodged the tribunal appeal on 16 January 2026 — well outside the legal deadline.
The Tribunal’s Decision
The Tax Appeals Tribunal accepted KRA’s preliminary objection that the appeal was time-barred. The judges did not examine whether KRA’s tariff classification of the ingredient was substantively correct or fair. Because the appeal was filed outside the statutory deadline, the case was struck out purely on procedural grounds.
KRA maintained the second tax demand after withdrawing the other, according to the authority’s submissions. Farmers Choice told the Tribunal that KRA had also detained additional consignments as part of its enforcement measures.
Possible Impact on Sausage and Smokie Prices
Farmers Choice is one of Kenya’s major meat processors. When its production costs rise, the effect can sometimes filter through to wholesale and retail prices of sausages, smokies, bacon and related products.
Higher duties on a key ingredient increase manufacturing costs. If the company chooses to pass part of the extra expense to distributors and retailers, some upward pressure on prices is possible. Temporary supply constraints from detained consignments could also influence availability and pricing in the short term.
Farmers Choice has not announced a price increase arising from the ruling. Any future retail price movements will depend on how the company manages the additional costs and how competitors respond.
Street vendors, kiosks and fast-food outlets that rely on bulk purchases of smokies and sausages remain sensitive to wholesale price changes and would typically adjust their own selling prices if costs rise.
Current Indicative Retail Prices
Below are approximate current market prices for popular Farmers Choice products based on recent supermarket and distributor listings. Actual prices can vary by location, pack size, promotions and retailer markup.
| Product | Pack Size | Approx. Price (KSh) |
|---|---|---|
| Value Pack Beef Sausages | 1 kg | 680 – 730 |
| Value Pack Pork Sausages | 1 kg | 680 – 730 |
| Beef Catering / Choma Sausages | 1 kg | 690 – 950 |
| Meaty Pork Sausages | 1 kg | 780 – 820 |
| Chicken Sausages | 400 g | 340 – 380 |
| Back Bacon | 200 g / 400 g | 450 – 880 |
| Beef Bacon | 200 g / 400 g | 550 – 1,100 |
Prices are indicative only and based on recent supermarket and online listings. They may change with promotions, location and supply conditions.
What This Means for Kenyan Consumers and Vendors
Sausages and smokies form a daily staple for many Kenyan households and a key product line for thousands of informal vendors. Any future cost pass-through would be felt at both supermarket and street level.
For ordinary consumers, the ruling raises the possibility of higher costs for everyday proteins if the extra duties are passed on. For smokie vendors and small eateries, tighter margins could result if wholesale prices rise.
Read also:Kenya Revenue Authority (KRA) — iTax, Tax Returns & Customs Services | Business Listings Kenya
The case also serves as a reminder of the importance of strict adherence to tax appeal timelines. Missing statutory deadlines can leave companies with no option but to accept KRA’s position, regardless of the merits of the underlying classification dispute.
The market will watch whether any additional costs are passed on to consumers and how competitors respond. For now, the Tax Appeals Tribunal has upheld KRA’s April 10, 2025 review decision after finding that Farmers Choice filed its appeal outside the statutory deadline.
Sources
- Daily Nation – Farmers Choice suffers blow in sausage ingredient row (25 August 2026)
- Tax Appeals Tribunal ruling on Farmers Choice vs KRA (tariff reclassification under EACCMA)
- Recent market price listings for Farmers Choice products (supermarkets and online retailers)
Updated 25 August 2026. The article is based on the latest court reporting and publicly available market information. Retail prices are indicative and subject to change. Farmers Choice has not announced any price increase arising from this ruling.