The Kenya Revenue Authority (KRA) has announced that bottled water will no longer attract excise duty following amendments introduced under the Finance Act, 2026.
In a notice issued on Monday, July 6, the tax authority said the changes took effect on July 1, effectively exempting bottled water manufactured or imported from that date from excise duty.
As a result of the amendment, manufacturers and importers will no longer be required to affix excise stamps on bottled water produced or brought into the country from the effective date.
KRA drops excise duty requirement for bottled water. Photo: Courtesy.
The move is expected to ease compliance requirements for businesses in the sector.
KRA said it will issue detailed guidelines on the handling of unused excise stamps, including the return of unutilised physical stamps and the decommissioning of digital stamps.
The guidance will be published on the authority’s official website once finalised.
The tax authority, however, clarified that the changes do not affect obligations that arose before the amendment came into force.
Manufacturers must still file their excise duty returns for June 2026 and settle any taxes due by the statutory deadline.
The removal of the excise duty forms part of broader tax changes introduced under the Finance Act, 2026, aimed at reviewing Kenya’s tax framework and adjusting levies on selected goods and services.
