The Kenya Revenue Authority (KRA) has sought to clarify changes to excise duty which took effect from 1st July 2026. Excise duties on certain products including bottled water, fruit and vegetable juices, specified imported sugar, antique vehicles, betting and gaming have been reviewed.

According to an update issued by KRA on Wednesday, 30 September 2026 businesses and consumers should not view the changes as either an across-the-board increase or a decrease since there are varying rates for specific categories of products.

“While excise duty has been zeroed in some products and lowered in selected services new duties have been introduced on specific goods and services,” the authority said. The tax authority asked businesses and consumers to identify the category of tax applicable to a particular good or service before determining the price implications of the changes.

Bottled water manufactured or imported from 1 st July 2026 will be excise duty free and shall not be subject to excise stamp duty. However, KRA said bottled water, which was lawfully manufactured or imported and stamped before the effective date can continue to be sold with the excise stamps already affixed on them. Furthermore, users of the V4 excise stamp should submit any unused V4 excise stamps to KRA in the manner prescribed to avoid a refund of the duty paid. Notably, the removal of excise duty on bottled water is a departure from the previous excise regime where a specific duty applied to the product.

Juices made from fruit and vegetable will be subject to different rates of excise duty depending on whether sugar or another sweetener has been added to the product. According to KRA’s current Finance Act 2026 guidance document, juices without the addition of sugar or sweeteners will be subject to a rate of Ksh14.14 per litre while those with the addition of sugar or sweeteners will attract a rate of Ksh20 per litre.

Imported specified sugar will attract an excise duty of Ksh40 per kilogramme, subject to specified exemptions contained in the law. This implies that not all sugar imports will be subject to the excise duty.

The new excise regime will impose a 50% duty on the excisable value of qualifying antique, vintage and classic cars. According to KRA the car must have been first registered at least 30 years before the date of purchase and its value should be at least Ksh10 million, excluding depreciation.

In relation to betting and gaming deposits KRA has introduced a 5% excise duty on the amount deposited for betting purposes. Betting and gaming operators will, therefore, need to review their accounting systems to reflect the excise duty changes.

KRA has asked businesses to which the excise duty changes apply to identify the applicable tariff code and rate, review product pricing and update financial and accounting systems to reflect the changes to the excise duty regime. Notably, in relation to consumers the changes to the excise duty regime do not necessarily translate into a similar percentage change to the final price of the products since the retail price is determined by various factors, including production costs, transport and distribution costs, among other considerations.