In a major shift for the beverage industry, the Kenya Revenue Authority (KRA) has scrapped the excise duty on all manufactured and imported bottled water. The tax relief stems from key amendments introduced through the Finance Act 2026, which overhauled the First Schedule to the Excise Duty Act Cap 472.
In an official notice released on Monday, the tax man clarified that the policy change took effect on July 1, 2026. Consequently, any bottled water produced locally or brought into the country on or after this date automatically escapes the levy.
The authority highlighted the practical breakdown of the new rule in its announcement, stating, “Bottled water manufactured or imported on or after this date will not be subject to excise duty and will not be required to be affixed with excise stamps.”
The tax collector clarified that the relief covers all bottled water produced or imported from the rollout date, lifting the twin burdens of paying excise duty and affixing physical stamps before products hit the shelves.
Looking ahead, the KRA plans to release additional guidelines detailing how manufacturers should handle leftover excise stamps and navigate the decommissioning of digital stamps. The authority will publish these technical details directly on its official website.
Meanwhile, officials directed manufacturers to wrap up their remaining tax obligations under the old framework. This includes submitting June 2026 excise duty returns and clearing any outstanding payments by July 20, 2026. For further clarification, the KRA urged stakeholders to reach out to its Enforcement Division through official channels or via email at [email protected].
