Bottled water exempted from excise duty
Business
By
Mate Tongola
| Jul 06, 2026
The Kenya Revenue Authority (KRA) has announced that bottled water manufactured or imported into the country will no longer be subject to excise duty or require excise stamps, following changes introduced under the Finance Act, 2026.
In a public notice issued on Monday, KRA said the changes took effect on July 1, 2026, after the Finance Act amended the First Schedule to the Excise Duty Act, Cap 472, removing bottled water from the list of excisable goods.
The authority said all bottled water manufactured or imported on or after July 1 will no longer be subject to excise duty or the mandatory excise stamps.
"From 1st July 2026, bottled water manufactured or imported in Kenya will no longer be subject to excise duty and will not require excise stamps," KRA said.
However, the tax agency directed manufacturers to settle all outstanding excise duty obligations for June 2026.
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KRA reminded manufacturers to file their June 2026 Excise Duty Returns and pay all taxes due by July 20, 2026, despite the new tax exemption.
The changes are part of amendments introduced under the Finance Act, 2026, aimed at removing bottled water from the list of products subject to excise duty.