Consumers and bottled water manufacturers are set to benefit after the Kenya Revenue Authority (KRA) announced the removal of excise duty on bottled water following the enactment of the Finance Act, 2026.
In a public notice issued on Tuesday, July 7, 2026, KRA said the tax exemption took effect on July 1, 2026, after the Finance Act, 2026 amended the First Schedule to the Excise Duty Act (Cap. 472).
The authority said bottled water manufactured or imported on or after July 1 will no longer attract excise duty and will not be required to bear excise stamps.
“Excise duty on bottled water is removed with effect from July 1, 2026. Bottled water manufactured or imported on or after this date will not be subject to excise duty and will not require to be affixed with excise stamps,” KRA said.
The tax agency added that it will soon issue detailed guidelines to facilitate the transition following the removal of the levy.
According to KRA, the Commissioner will publish guidance on the return of unused excise stamps and the decommissioning of digital stamps on the authority’s official website.
“The Commissioner will issue detailed guidelines on the return of unutilized stamps and the decommissioning of digital stamps, which will be published on the official KRA website,” the notice stated.
Despite the tax change, KRA reminded manufacturers to comply with existing filing obligations for the period before the exemption took effect.
“Manufacturers are reminded of their obligation to submit their Excise Duty Returns for the month of June 2026 and pay the taxes due by July 20, 2026,” the authority said.
The removal of excise duty is expected to lower compliance costs for manufacturers and importers, with industry players anticipating that the move could eventually translate into lower retail prices for consumers.
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