In a notification dated July 6, 2026, sent to manufacturers and importers, the tax authority confirmed that bottled water produced or imported on or after July 1, 2026, will no longer be subject to excise duty.
The changes, which will take effect on July 1, 2026, introduce updated regulatory compliance requirements for manufacturers and importers, as well as transitional measures affecting excise duty management systems. "The Kenya Revenue Authority is notifying all licensed producers and importers of bottled water, as well as the public, that in accordance with the Finance Act of 2026 (amending the First Schedule to the Excise Duty Act, Chapter 472), the excise duty on bottled water will be abolished on July 1, 2026," the statement said. parts of the notification. Bottled water is excluded from the scope of the excise tax.
According to the new directives, the excise duty on bottled water has been abolished since July 1, 2026. This means that producers and importers of bottled water will no longer need to take excise duty into account when pricing, reporting on production, or in regulatory compliance systems for goods produced after the effective date of the changes. Previously, bottled water producers were required to pay an excise duty and affix excise stamps issued by KRA to each unit of production to confirm compliance with tax laws. The abolition of the requirement for excise stamps for bottled water. KRA also confirmed that bottled water will no longer be subject to excise labeling, which means that both physical and digital stamps will no longer be used in the EGMS system for this category of goods.
The agency said it would issue detailed instructions on how manufacturers should handle unused excise stamps in circulation.
The Department also reminded manufacturers and importers that excise duty declarations for June 2026 must be submitted and paid by July 20, 2026, in accordance with legal requirements. «Bottled water produced or imported on or after this date will not be subject to excise duties and will not require the affixing of excise stamps. The Commissioner will issue detailed instructions on the return of unused stamps and decommissioning of digital stamps, which will be published on the official KRA website. Manufacturers are reminded of their obligation to file excise tax returns for June 2026 and pay the taxes due by July 20, 2026», the KRA added.
Despite the abolition of the excise duty on bottled water, KRA clarified that all tax obligations incurred before July 1, 2026, remain in force. This means that bottled water produced or imported before the policy change will still be subject to excise duty under the previous system. «Bottled water produced or imported on or after this date will not be subject to excise duty and will not require the affixing of excise stamps», the notice says.
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