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The Kenya Revenue Authority (KRA) has announced significant adjustments to excise duty rates on various goods and services, effective December 27, 2024.
The changes are part of the Tax Laws (Amendment) Act, 2024, aimed at increasing government revenue while regulating the consumption of excisable products.
The new rates are set to increase the price of imported sugar, cigarettes and nicotine products, betting and gambling, as well as platics.
The changes in excise duties are likely to lead to higher retail prices for alcoholic beverages, particularly those with a high alcohol content.
Small brewers may find some relief due to a lower tax rate, but consumers of premium or high-alcohol-content products will feel the pinch.
Here are all the adjustments announced by KRA
Imported sugar - Excise duty increases from Sh5 per kg to Sh7.50 per kg, excluding sugar imported by a registered pharmaceutical manufacturer and raw sugar imported for processing by a licensed sugar refinery.
Wines, fortified wines, and other alcoholic beverages from fermented fruits: Excise duty changes from Sh 243.43 per litre to Sh22.50 per centilitre of pure alcohol.
Beer, cider, perry, mead, and mixtures of fermented beverages (alcoholic strength not exceeding 6%): Excise duty changes from Sh142.44 per litre to Sh 22.50 per centilitre of pure alcohol.
Beer, cider, perry, mead, and similar beverages manufactured by licensed small independent brewers: Excise duty changes from Sh142.44 per litre to Sh10 per centilitre of pure alcohol.
Spirits and liqueurs (alcoholic strength exceeding 6%): Excise duty changes from Sh356.42 per litre to Sh10 per centilitre of pure alcohol.
Cigarettes with filters (hinge lid and softcap): Excise duty increases from Sh 4,067.03 per mille to Sh4,100 per 1,000 cigarettes.
Cigarettes without filters (plain cigarettes): Excise duty increases from Sh2,926.41 per mille to Sh4,100 per 1,000 cigarettes.
Products containing nicotine or nicotine substitutes: Excise duty increases from Sh1,594.50 per kg to Sh 2,000 per kg.
This includes products intended for inhalation without combustion or oral application but excludes medicinal products approved by the Cabinet Secretary for Health.
Liquid nicotine for electronic cigarettes: Excise duty increases from Sh 70 per millilitre to Sh 100 per millilitre.
Imported sugar confectionery of tariff heading 17.04: Excise duty increases from Sh42.91 per kg to Sh85.82 per kg.
Imported self-adhesive plastic materials and other flat shapes: Excise duty remains at 25%, but the rate now includes an option of Sh200 per kg, whichever is higher.
This excludes plastics originating from East African Community Partner States meeting the East African Community Rules of Origin.
Imported plates of plastic under specified tariff headings: Excise duty remains at 25%, but now includes an option of Sh200 per kg, whichever is higher. This also excludes plastics originating from East African Community Partner States meeting the East African Community Rules of Origin.
Amount wagered or staked on betting (excluding horse racing): Excise duty increases from 12.5% to 15%.
Amount wagered or staked on gaming: Excise duty increases from 12.5% to 15%.
Amount paid or charged to participate in a prize competition: Excise duty increases from 12.5% to 15%.
Amount paid or charged to buy lottery tickets (excluding charitable lotteries): Excise duty increases from 12.5% to 15%.
Compliance Guidelines
Manufacturers of the excisable goods and suppliers of the excisable services are required to charge the new excise duty rates on the excisable goods and services and remit the tax collected to the Commissioner as follows:
For betting and gaming services, within twenty-four hours from the closure of transactions of the day.
For licensed manufacturers of alcoholic beverages, on or before the fifth day of the month following the month in which the tax was collected.
For other licensed persons, on or before the 20th day of the month following the month in which the tax was collected.