KRA removes excise duty on bottled water effective July 1

KRA removes excise duty on bottled water effective July 1

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KRA said the change will take effect from July 1, 2026, meaning bottled water produced or imported on or after this date will no longer attract excise duty.

The Kenya Revenue Authority (KRA) has officially announced the removal of excise duty on both manufactured and imported bottled water, following amendments introduced through the Finance Act 2026, which revised the First Schedule to the Excise Duty Act Cap 472.
In a notice on Monday, KRA said the change will take effect from July 1, 2026, meaning bottled water produced or imported on or after this date will no longer attract excise duty.
“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 Authority said.
KRA emphasised that the removal applies to all bottled water produced or imported from the effective date, easing previous tax obligations that required both payment of excise duty and stamping of products before distribution.
At the same time, KRA noted that further guidance will be issued by the Commissioner outlining how to handle unused excise stamps and the process of decommissioning digital stamps. These details will be published on the official KRA website.
Manufacturers have also been directed to ensure compliance with remaining tax obligations, including submission of excise duty returns for June 2026 and payment of any taxes due by July 20, 2026.
For any clarification, stakeholders have been urged to contact the Enforcement Division through their official contacts or via email at [email protected].

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