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The Kenya Revenue Authority (KRA) has announced that bottled water produced locally or imported into Kenya will no longer attract excise duty or require excise stamps following amendments introduced through the Finance Act, 2026.
In a notice released on Monday, KRA said the new measures came into effect on July 1, 2026, after the Finance Act amended the First Schedule of the Excise Duty Act, Cap 472.
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As a result, all bottled water manufactured or imported from July 1 onwards has been removed from the list of excisable goods, eliminating the requirement for both excise tax and excise stamps.
“Effective 1st July 2026, bottled water manufactured or imported in Kenya will no longer be subject to excise duty and will not require excise stamps,” KRA said.
However, the tax authority clarified that manufacturers must still settle any outstanding excise obligations for June 2026. It urged businesses to file their June Excise Duty Returns and remit any taxes due by July 20, 2026.
KRA explained that the latest changes are in line with the Finance Act, 2026, which officially removed bottled water from the schedule of products subject to excise duty.
The authority added that it will soon issue detailed guidelines on how manufacturers and importers should handle unused excise stamps following the tax’s removal.
According to KRA, the Commissioner will publish instructions on the return of unused excise stamps and the decommissioning of digital excise stamps through the authority’s official website.
Manufacturers, importers and other affected taxpayers have been advised to keep checking KRA’s communication channels for updates. Those requiring further clarification can contact the authority’s Enforcement Division using the phone numbers or email address provided in the public notice.
