The Kenya Revenue Authority (KRA) has announced adjustments to excise duty rates for various goods and services, following the enactment of the Tax Laws (Amendment) Act, 2024.
These changes, set to take effect on December 27, 2024, will impact manufacturers, importers, and suppliers of the affected excisable goods and services.
Below is a detailed summary of the updated rates:
Goods and Services with Revised Excise Duty Rates
- Imported Sugar (excluding sugar imported by registered pharmaceutical manufacturers and raw sugar for licensed sugar refineries):
- Previous Rate: Ksh.5 per kg
- New Rate: Ksh.7.50 per kg
- Cigarettes with Filters (hinge lid and soft cap):
- Previous Rate: Ksh.4,067.03 per mille
- New Rate: Ksh.4,100 per mille
- Cigarettes without Filters (plain cigarettes):
- Previous Rate: Ksh.2,926.41 per mille
- New Rate: Ksh. 4,100 per mille
- Nicotine Products for Inhalation or Oral Application (excluding approved medicinal products):
- Previous Rate: Ksh.1,594.50 per kg
- New Rate: Ksh.2,000 per kg
- Liquid Nicotine for Electronic Cigarettes:
- Previous Rate: Ksh.70 per millilitre
- New Rate: Ksh.100 per millilitre
- Imported Sugar Confectionery (tariff heading 17.04):
- Previous Rate: Ksh.42.91 per kg
- New Rate: Ksh.85.82 per kg
- Wines and Alcoholic Beverages Obtained by Fermentation:
- Previous Rate: Ksh.243.43 per litre
- New Rate: Ksh.22.50 per centilitre of pure alcohol
- Beer, Cider, Mead, and Similar Fermented Beverages (alcoholic strength not exceeding 6%):
- Previous Rate: Ksh.142.44 per litre
- New Rate: Ksh.22.50 per centilitre of pure alcohol
- Fermented Beverages by Licensed Small Independent Brewers:
- Previous Rate: Ksh.142.44 per litre
- New Rate: Ksh.10 per centilitre of pure alcohol
- Spirits, Liqueurs, and Other Spirituous Beverages (alcoholic strength exceeding 6%):
- Previous Rate: Kesh.356.42 per litre
- New Rate: Ksh.10 per centilitre of pure alcohol
- Imported Self-Adhesive Plastic Products (specific tariff codes):
- Previous Rate: 25%
- New Rate: 25% or Ksh.200 per kg, whichever is higher
- Imported Plastic Plates (specific tariff codes):
- Previous Rate: 25%
- New Rate: 25% or Ksh.200 per kg, whichever is higher
- Betting Amounts Wagered or Staked:
- Previous Rate: 12.5%
- New Rate: 15%
- Gaming Amounts Wagered or Staked:
- Previous Rate: 12.5%
- New Rate: 15%
- Amounts Paid for Prize Competitions:
- Previous Rate: 12.5%
- New Rate: 15%
- Lottery Tickets (excluding charitable lotteries):
- Previous Rate: 12.5%
- New Rate: 15%
Also Read: KRA Announces Key Changes to PAYE Following Tax Laws (Amendments) Act, 2024
Manufacturers and suppliers are required to implement the new rates and remit the excise duty collected to the Commissioner as follows:
- Betting and Gaming Services: Taxes must be remitted within 24 hours of the day’s closure of transactions.
- Licensed Alcoholic Beverage Manufacturers: Taxes are due on or before the 5th day of the month following the collection month.
- Other Licensed Persons: Taxes must be remitted on or before the 20th day of the month following the collection month.
The revised excise duty rates are expected to impact the pricing of the affected goods and services, particularly in the sugar, tobacco, alcohol, and betting industries.
