Starting July 1, 2025, a wide range of imported goods are now subject to new excise duties, following the enactment of the Finance Act, 2025. The Kenya Revenue Authority (KRA) has outlined the specific goods that will attract excise duty ranging between 25 and 35 per cent, in a move aimed at boosting local industries and increasing tax revenues.
The new law exempts goods originating from East African Community (EAC) partner states, preserving regional trade benefits. However, all other importers, manufacturers, and suppliers of excisable goods are now required to obtain appropriate licenses, import certificates, or registration certificates, as applicable.
According to KRA, a 25 per cent excise duty or Sh50 per kilogram, whichever is higher will apply to imported tea (whether flavoured or not), non-refillable lighters, and a variety of packaging and polymer-related products. These include kraft paper, printed cellular sheets, laminated polymers, self-adhesive films, and flat plastics.
Also affected are aluminium profiles and fabricated items such as doors and windows, along with imported, fully built or semi-built direct air capture machines.
A steeper 35 per cent excise duty or Sh500 per square metre, whichever is higher has been imposed on imported glass classified under headings 70.03, 70.04, and 70.05. Similarly, multiple-walled insulating glass units under heading 70.08 will attract the same tax rate or Sh500 per kilogram.
Alcoholic products are not spared either. Spirits made from undenatured extra neutral alcohol with an alcoholic strength exceeding 90 per cent will be taxed at Sh500 per litre.
The Finance Act also addresses the fast-growing digital space by introducing a 10 per cent excise duty on virtual assets transactions, such as cryptocurrency, conducted by virtual asset providers.
In a welcome relief for the betting and gaming industry, excise duty on amounts deposited into betting and gaming wallets has been reduced from 15 per cent to 5 per cent. This new rate also applies to prize competitions and lottery entries, excluding charitable lotteries.
KRA has emphasized timely tax remittance, with betting and gaming providers expected to remit taxes within 24 hours of transaction closure, and other service providers by the 20th of the following month.
