Sharp Daily
No Result
View All Result
Monday, September 7, 2026
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

KRA scraps excise duty on bottled water

New rule effective July 1, 2026 ends both the tax and the excise stamp requirement for manufacturers and importers

Sharon Busuru by Sharon Busuru
July 7, 2026
in News
Reading Time: 2 mins read

The Kenya Revenue Authority (KRA) has done away with excise duty on bottled water, in a move that offers relief to manufacturers, importers and consumers across Kenya. The changes took effect on July 1, 2026, and apply to all licensed manufacturers and importers of bottled water, with bottled water manufactured or imported from that date no longer attracting excise duty or requiring excise stamps to be affixed.

The change stems from amendments contained in the Finance Act, 2026, which revised the First Schedule to the Excise Duty Act, Cap 472, removing bottled water from the list of excisable goods. Before the amendment, bottled water manufacturers paid 50 cents per excise stamp, while water dispensed through vending machines, or water ATMs, was taxed at Sh5.74 per litre.

The reform also does away with the requirement for excise stamping. This brings to an end the use of both physical and digital stamps under KRA’s Excise Goods Management System (EGMS) for this category of products. KRA has said it will issue further guidance on how manufacturers should handle stamps already purchased but not yet used, and how digital stamps in circulation will be decommissioned, with these details to be published on its official website.

Even with the exemption now in force, the taxman has clarified that obligations from before the changeover remain in place. Manufacturers have been directed to file their June 2026 excise duty returns and settle any outstanding dues by July 20, 2026. KRA also noted that manufacturers must continue to comply with other applicable taxes, including the standard 16 percent VAT and the 10 percent excise duty on plastic packaging introduced under the same Finance Act.

RELATEDPOSTS

Kenya’s diaspora remittances fall 3% to Sh316 Billion in H1 2026

September 3, 2026

Kenya’s inflation edges up to 6.6% in August 2026, driven by fuel and food costs

September 1, 2026

The move is part of a broader set of tax adjustments under the Finance Act, 2026, aimed at easing compliance costs for businesses while encouraging price reductions for consumers in the bottled water market.

Previous Post

Kenya cuts Chinese loan repayments by Sh21.6 Billion After SGR debt restructuring

Next Post

Absa Group pushes Kenya unit to diversify revenue as interest income declines

Sharon Busuru

Sharon Busuru

Related Posts

Analysis

Kenya holds central bank rate at 8.75%

September 4, 2026
News

The Power of Compound Interest in Building Your Retirement Fund

September 4, 2026
News

Election Cycles and Investments in Kenya: Positioning Ahead of 2027

September 4, 2026
News

A Strong Brand Does Not Always Make a Strong Investment

September 4, 2026
News

When Weak Financial Controls Become an Investment Risk

September 4, 2026
News

Strategic Partnerships Can Create Value Beyond a Company’s Core Business

September 4, 2026

LATEST STORIES

Kenya holds central bank rate at 8.75%

September 4, 2026

How financial institution failures affect the wider economy

September 4, 2026

The Power of Compound Interest in Building Your Retirement Fund

September 4, 2026

Election Cycles and Investments in Kenya: Positioning Ahead of 2027

September 4, 2026

The Fed’s September Dilemma: Inflation, Oil and the Jobs Market

September 4, 2026

A Strong Brand Does Not Always Make a Strong Investment

September 4, 2026

When Weak Financial Controls Become an Investment Risk

September 4, 2026

Strategic Partnerships Can Create Value Beyond a Company’s Core Business

September 4, 2026
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024