The Kenya Revenue Authority has issued a reminder explaining excise duty changes that took effect on July 1, 2026, affecting products consumed by Kenyans that were incorporated under the Finance Act 2026.In its latest update to the public explaining the changes in the Finance Act, KRA said excise duty had been removed from some products, while new duties had been introduced on specific goods and services."While excise duty has been removed from some products and reduced on selected services, new duties have also been introduced on specific goods and services," KRA stated.Among the products affected is specified imported sugar, which will be subject to an excise duty of Ksh40 per kilogramme, subject to stated exclusions.Antique, vintage and classic vehicles will also attract an excise duty of 50 per cent of the excisable value.KRA further stated that a 5 per cent excise duty would be charged on amounts deposited for betting purposes, including betting on horse racing and gaming.At the same time, juices without added sugar or sweetener will continue to attract an excise duty of Ksh14.14 per litre.However, those containing added sugar or sweeteners will incur a Ksh 20-per-litre charge.At the same time, the tax agency has also removed excise duty on bottled water, in relief to businesses in the sector.Previously, bottled water attracted an excise duty of Ksh6.41 per litre, while juices, sweetened or without additives, attracted Ksh20 and Ksh14.14 per litre, respectively, all of which have remained unchanged.However, imported sugar previously attracted a duty of Ksh7.5 per kilogram but has now increased to Ksh40 to promote local production.While other changes in the Finance Act will take time to take effect, the changes to excise duties took effect immediately upon the commencement of the 2026/27 financial year on July 1, 2026.
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