The Kenya Revenue Authority (KRA) has reminded Kenyans about new excise duty measures introduced under the Finance Act 2026, which came into effect on July 1.
The changes affect a range of goods and services, including imported sugar, betting, gaming and antique vehicles, while excise duty on bottled water has been scrapped.
In its latest update explaining the implementation of the Finance Act, KRA said some products had been removed from the excise duty bracket, while new charges had been introduced on others.
"While excise duty has been removed from some products and reduced on selected services, new duties have also been introduced on specific goods and services," KRA stated.
Under the new measures, specified imported sugar now attracts an excise duty of Ksh40 per kilogramme, subject to the stated exclusions.
The rate represents a significant increase from the previous Ksh7.50 per kilogramme and is intended to support local sugar production.
Antique, vintage and classic vehicles have also been subjected to an excise duty equivalent to 50 per cent of their excisable value.
KRA further introduced a 5 per cent excise duty on amounts deposited for betting purposes, covering activities such as horse racing and gaming.
For juice products, the existing excise duty rates have been retained. Juices without added sugar or sweeteners continue to attract Ksh14.14 per litre, while those containing added sugar or sweeteners are charged Ksh20 per litre.
However, bottled water has been removed from the excise duty bracket, providing relief to businesses in the sector. Before the change, bottled water attracted an excise duty of Ksh6.41 per litre.
The KRA update noted that while some provisions under the Finance Act 2026 will take time to be implemented, the changes affecting excise duty took effect immediately at the beginning of the 2026/27 financial year.
The new excise duty measures therefore became effective on July 1, 2026.
