NAIROBI, Kenya, Jan 8 – Manufacturers and importers in Kenya are bracing for difficult times following the Kenya Revenue Authority’s (KRA) introduction of revised excise duty rates, effective December 27, 2024.
The changes will impact over 25 goods and services, including sugar, cigarettes, nicotine products, alcohol, betting, and lotteries.
Key Changes in Excise Duty
The excise duty on imported sugar, excluding that used by pharmaceutical manufacturers and raw sugar for processing, has risen from Sh5 per kg to Sh7.50 per kg.
Imported sugar confectionery under tariff heading 17.04 has increased significantly from Sh42.91 to Sh85.82 per kg.
For cigarettes, the duty on filtered and non-filtered variants has been harmonized at Sh4,100, up from Sh4,067.03 and Sh2,926.41, respectively.
Nicotine products for inhalation without combustion now attract an increased duty of Sh2,000, up from Sh1,594.50, while liquid nicotine for e-cigarettes has risen from Sh70 per milliliter to Sh100.
Alcoholic Beverages
Wines: Excise duty has increased from Sh243.43 per liter to Sh22.50 per centiliter of pure alcohol.
Spirits: Undenatured ethyl alcohol, liqueurs, and spirituous beverages with over 6% alcohol now attract a rate of Sh10 per centiliter of pure alcohol.
Beer: Beer, cider, and other fermented beverages with over 6% alcohol content now attract Sh22.50 per centiliter of pure alcohol, with lower rates for small independent brewers.
Other Products
Imported self-adhesive plastic plates, sheets, and other flat plastic shapes will attract 25% or Sh200 per kg. Imported printing ink, unless originating from EAC partner states, will be taxed at 15%.
Betting and Advertising
The excise duty on betting stakes has increased from 12.5% to 15%. Internet and social media advertisements for beverages, betting, gaming, lotteries, and prize competitions will also be taxed at 15%.
Household and Construction Items
Ceramic sinks, basins, and similar fixtures will attract 5% of customs value or Sh50 per kg. Imported float glass will be taxed at Sh200 per kg, while ceramic tiles will have a duty of Sh200 per square meter.
Industrial Products
Imported saturated polyester, vinyl acetate polymers, and emulsion-styrene acrylic will now attract a 20% duty. Printed paper and paperboard that meet EAC origin rules will attract 25% or Sh150 per kg, while other articles under the tariff heading will face a 10% duty.
The adjustments are expected to significantly impact businesses and consumers, with increased costs across various sectors.
