Excise Duty Rates in Kenya

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In this post, we have listed excise duty rates in Kenya as of 2019 according to the Kenya Revenue Authority ( KRA). This is a duty imposed on goods and services manufactured in Kenya or imported into Kenya. The Excise duty on locally manufactured excisable goods and services is payable to the commissioner of domestic taxes while excise duty on imported goods and services is accounted to the commissioner, customs services department.

Types Of Excise Duty 

1.Specific Duty Rate

This refers to where a specified amount of tax is charged per unit of measure of an excisable product e.g. Kshs 120 per litre of spirit.

2. Ad Valorem Duty Rate

This refers to a percentage rate of duty charged on the value of an excisable product. For imports, the tax is charged on the CIF ( cost, insurance and freight). It is determined in accordance with customs valuation and for locally manufactured excisable goods ad valorem rate is charged on the ex-factory selling price.
Where a product or service attracts both ad valorem and specific tax rates, the rate yielding higher duty shall be applied.
Who should pay excise duty? 
All manufacturers, providers and importers of excisable goods and services should pay excise duty.
Goods and Services liable to Excise Duty

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Description

Rate Of duty In Kshs

Juices

7% of the excisable value

Mineral water, ice blocks

5% or Ksh 3 per litre

Sodas

7% of the excisable value

Cosmetics

5% of the excisable value

Petroleum jelly

5% of the excisable value

Other non-alcoholic beverages

7% of the excisable value

Malted Beers​​

Ksh 54 per litre

Beers not made from malt

Ksh 45 per litre

Wine

Ksh 70 per litre or 50 % of the excisable value

Spirit

Ksh 120 per litre or 65 % of the excisable value

Mobile Cellular phone services

10% of the excisable value

Other wireless telephone services

10% of the excisable value

Plastic shopping bags

50% of the excisable value

Processed Tobacco

130% of the excisable value

Cigarette Excise Duty in Kenya

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Category

Description

Rate Of Excise Duty in Ksh per Mille

A

Plain cigarettes or plain cigarettes RSP of up to Ksh 2500 per mille

700

B

Soft cap cigarettes of <72 mm or soft cap cigarettes with RSP of Ksh 2501 – 3500 per mille​​

1000

C

Soft Cap cigarettes of > 72 mm or SoftCap cigarettes with RSP of Ksh 3501 – 4500 per mille

1,500

D

Hinge lid or RSP of more than Ksh 4500 per mille

2,500
Collection and payment
The duty on locally manufactured excisable goods is charged at the rate in force when goods liable are delivered from an excise stock room or when services are rendered. The amount of duty charged is payable, through an excise return, to the Commissioner, Domestic Taxes, on or before the 20th date of the month following the month in which the goods/services sold or offered.
Penalties 
A person, who fails to file a return, is liable to a default penalty of 10,000 shillings or 5% of the amount of duty payable. This in addition to interest of 2% per month or part thereof charged on the amount that remains unpaid. Failure to comply with the law and regulations under the Customs and Excise Act can attract a fine of up to Ksh 1.5 Million and/or a prison term not exceeding 3 years and the goods in respect of which the offence has been committed are liable to forfeiture.
Kenya Revenue Authority Contacts 
For further information please visit any KRA station near you or contact their Times Tower offices on  +254 20 4 999 999 or +254 711 099 999.
Email Commissioner of Domestic Taxes – Ito@kra.go.ke

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