Kenya Revenue Authority: Excise Duty Rates Adjusted Under Finance Act 2025

• KRA has announced adjustments to excise duty rates for various goods and services as per the Finance Act, 2025.
• The changes are aimed at aligning the tax regime with the country's economic growth objectives.
• Taxpayers must comply with the new excise duty rates from the date specified in the public notices.
• Failure to comply may result in fines and other penalties as provided under the law.

The adjustments are part of the Finance Act, 2025, which was passed into law in July 2025.

The Kenya Revenue Authority (KRA) has announced adjustments to excise duty rates for various goods and services as per the Finance Act, 2025. The changes are aimed at aligning the tax regime with the country's economic growth objectives. According to public notices issued by KRA, the adjusted excise duty rates will apply to a range of products, including tobacco, alcohol, and petroleum products.

The adjustments are part of the Finance Act, 2025, which was passed into law in July 2025. The Act introduces several key amendments to the tax laws, with a focus on increasing revenue collection for the government.

KRA has informed taxpayers that they must comply with the new excise duty rates from the date specified in the public notices.

The Finance Act, 2025, is a key piece of legislation aimed at reforming Kenya's tax laws. The Act introduces several changes to the tax regime, including adjustments to excise duty rates for various goods and services. According to Section 3 of the Act, the adjusted excise duty rates will apply to all excisable goods and services from the date specified in the public notices.

The Act also introduces new penalties for non-compliance with the tax laws. Taxpayers who fail to comply with the new excise duty rates may face fines and other penalties as provided under the law.

KRA has emphasized that taxpayers must familiarize themselves with the changes introduced by the Finance Act, 2025, and take necessary steps to ensure compliance.

The adjustments to excise duty rates for various goods and services have significant implications for businesses operating in Kenya. Compliance officers and lawyers must closely monitor the changes introduced by the Finance Act, 2025, to ensure that clients are aware of their obligations under the new tax regime.

Failure to comply with the new excise duty rates may result in fines and other penalties, which can have a significant impact on business operations. It is essential for taxpayers to seek professional advice to understand the implications of the changes and take necessary steps to ensure compliance.

The adjustments to excise duty rates are also expected to increase revenue collection for the government, which will be used to fund key development projects in the country.

Lawyers and compliance officers should monitor the adjusted excise duty rates for excisable goods and services, as specified by the Finance Act 2025, to ensure clients are compliant with the new regulations.

Source: Original reporting via Kenya Revenue Authority public notices