Lilian Nyiva
The Kenya Revenue Authority (KRA) has announced the removal of excise duty and the mandatory excise stamp requirement on bottled water manufactured or imported into Kenya, with the changes taking effect from July 1, 2026.
The move follows the implementation of the Finance Act, 2026, which eliminated the excise duty previously charged on bottled and similarly packaged water. The tax had been levied at KSh6 per litre, while manufacturers were also required to affix excise stamps to bottled water products.
Relief for Manufacturers
The removal of both the excise duty and excise stamp requirement is expected to lower production and compliance costs for manufacturers and importers of bottled water.
Previously, bottled water was classified as an excisable product, requiring manufacturers to obtain excise licences, file monthly excise returns, and affix excise stamps to every bottle.
Consumers Expected to Benefit
The tax changes are expected to reduce the cost of bottled water, with the National Treasury urging manufacturers, distributors, and retailers to pass on the savings to consumers through lower retail prices. Treasury officials have stated that the removal of the KSh6 per litre excise duty should make bottled water more affordable.
Part of Broader Tax Reforms
The changes form part of the wider tax reforms introduced under the Finance Act, 2026, which took effect on July 1. The reforms are intended to ease the tax burden in selected sectors, improve the business environment, and lower the cost of essential goods for consumers.
While bottled water is no longer subject to excise duty or excise stamp requirements, KRA has maintained that it will continue enforcing tax compliance and quality standards across other excisable products to safeguard government revenue and protect consumers.
