January 8, 2025
KRA Introduces New Excise Duty Rates Impacting Key Goods and Services
These changes are part of KRA’s efforts to boost tax revenue but are expected to raise production expenses and consumer prices across various sectors.
The Kenya Revenue Authority (KRA) implemented revised excise duty rates on December 27, 2024, affecting over 25 goods and services. Notable changes include higher taxes on sugar, with imported sugar rising from Sh5 to Sh7.50 per kg, and sugar confectionery increasing to Sh85.82 per kg, up from Sh42.91. Cigarette duties have been harmonized at Sh4,100 per 1,000 sticks, while nicotine products and e-cigarette liquids now face steeper levies. Alcohol taxes have also surged, with spirits taxed at Sh10 per centiliter of pure alcohol and beer at Sh22.50 per centiliter. Betting stakes now attract a 15% excise duty, up from 12.5%.
The revised rates extend to construction and industrial products, including ceramic sinks, tiles, polyester, and printing ink, further increasing costs for businesses and consumers. These changes are part of KRA’s efforts to boost tax revenue but are expected to raise production expenses and consumer prices across various sectors.
