By Ken Muthomi - Reporter
Kenya, July 6, 2026 - The Kenya Revenue Authority has announced the removal of excise duty on bottled water, a move expected to ease the tax burden on manufacturers and importers of the commodity.
In a statement on Monday, the authority said that the change, which took effect from July 1, followed an amendment introduced under the Finance Act, 2026 (amending the first Schedule of the Excise Duty Act, Cap 472).
The authority has said that all bottled water manufactured or imported on or after the effective date will no longer attract excise duty, and will not be required to pay excise duty.
“Kenya Revenue Authority notifies all licensed manufacturers and importers of bottled water and the general public that pursuant to the Finance Act, 2026 (amending the First Schedule to the Excise Duty Act, Cap 472), excise duty on bottled water is removed with effect from 1st July, 2026,” the authority confirmed.
“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,” it added.
Despite the removal, the authority has noted that manufacturers must still comply with other tax obligations for the period before the change took effect.
The authority has directed manufacturers to file the excise duty returns for June 2026 and settle any taxes due by July 20,2026.
The commodity now joins the category of products that are free from excise duty, that are not specifically listed under Part I of the First Schedule, under the Under Kenya's Excise Duty Act, and are exempt from excise duty.
These goods, including staple foods such as maize flour, wheat and rice, as well as ordinary household items, clothing, electronics, books and fresh produce, are not subject to the tax.
The removal of the excise duty is expected to reduce compliance costs for bottled water manufacturers and importers and could potentially lower the retail cost of bottled water for consumers.
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