Aiden k 
The Kenya Revenue Authority (KRA) has announced the removal of excise duty on bottled water, a move expected to lower production costs for manufacturers and potentially ease prices for consumers.
In a public notice issued on Monday,KRA said the tax relief follows the enactment of the Finance Act, 2026, which amended the First Schedule to the Excise Duty Act (Cap. 472). The change took effect on July 1, 2026.
According to the taxman, all bottled water manufactured or imported from the effective date will no longer attract excise duty.
In addition, the products will no longer be required to carry excise stamps.
“The removal of excise duty applies to bottled water manufactured or imported on or after July 1, 2026, and such products will not be subject to excise duty or require the affixing of excise stamps,” KRA said in the notice.
The authority noted that detailed guidelines on the return of unused excise stamps and the decommissioning of digital stamps will be issued by the Commissioner and published on the official KRA website.
Despite the tax changes, KRA reminded manufacturers that they are still required to comply with their existing tax obligations. Producers of bottled water must file their Excise Duty Returns for June 2026 and settle any taxes due by July 20, 2026.
The removal of the excise duty is expected to provide relief to manufacturers by reducing operational costs associated with the tax and excise stamp requirements.
Industry players will now await the detailed implementation guidelines to facilitate a smooth transition under the new tax regime.
KRA advised manufacturers, importers and other stakeholders seeking clarification on the new measures to contact its Enforcement Division through the provided telephone numbers or official email channels.
The announcement forms part of broader tax reforms introduced under the Finance Act, 2026, aimed at reviewing the country’s tax structure and supporting economic growth across key sectors.
