Kenya Revenue Authority: Excise Duty Imposition on Goods & Services Under Finance Act 2026

• The Kenya Revenue Authority (KRA) has introduced excise duty on certain goods and services in line with the Finance Act, 2026.
• Excise duty will be levied on the sale or importation of tobacco, petroleum products, electronic devices, and other specified goods and services from January 1, 2026.
• The KRA has issued public notices outlining the requirements for compliance, including submission of returns and payment of taxes.
• Businesses operating in Kenya must be aware of the new filing deadlines and tax obligations arising from the Finance Act, 2026.

The introduction of excise duty has significant implications for businesses operating in Kenya, particularly those involved in the importation and sale of excisable goods.

The Kenya Revenue Authority (KRA) has issued public notices regarding the imposition of excise duty on certain goods and services in line with the Finance Act, 2026. The new law introduces excise duty on a range of products, including tobacco, petroleum products, and electronic devices. This move is aimed at increasing government revenue through taxation. According to the KRA, the excise duty will be levied on the sale or importation of these goods and services, effective from January 1, 2026.

The Finance Act, 2026 has made significant changes to Kenya's tax laws, with a focus on increasing revenue collection. The law introduces excise duty as a new form of taxation, which will be administered by the KRA. Excise duty is a type of indirect tax that is levied on specific goods and services at various stages of production or sale. This move is in line with global trends, where governments are increasingly relying on taxation to fund their budgets.

The introduction of excise duty has significant implications for businesses operating in Kenya, particularly those involved in the importation and sale of excisable goods. Compliance officers and lawyers need to be aware of the new filing deadlines and tax obligations arising from the Finance Act, 2026. Failure to comply with these regulations may result in penalties and fines. The KRA has issued public notices outlining the requirements for compliance, including the submission of returns and payment of taxes.

Lawyers and compliance officers should watch for the new filing deadlines and tax obligations arising from the Finance Act 2025, which introduces excise duty on certain goods and services in Kenya.

Source: Original reporting via KRA public notices