KRA Explains New Excise Duty Changes on Water, Juices, Sugar and Betting

The Kenya Revenue Authority (KRA) has explained changes to excise duty affecting bottled water, fruit and vegetable juices, specified imported sugar, antique vehicles, betting and gaming deposits.

In an update on Wednesday, September 30, the authority said the changes were intended to apply differently across various categories of goods and services.

"While excise duty has been removed from some products and reduced on selected services, new duties have also been introduced on specific goods and services," the update read.

KRA noted that consumers and businesses needed to identify the specific category applicable to them to understand how the changes affected them.

Bottled water was among the products whose excise duty was completely removed under the changes.

For fruit and vegetable juices, the applicable rate depended on whether the products contained added sugar or sweeteners. Juices without added sugar retained an excise duty of Ksh14.14 per litre.

However, fruit and vegetable juices containing added sugar or sweeteners attracted a higher excise duty of Ksh20 per litre.

Specified imported sugar was also affected, with an excise duty of Ksh40 per kilogram applying to the category, subject to stated exclusions.

The changes further introduced an excise duty on antique, vintage and classic vehicles, which are charged at a rate equivalent to 50 percent of their excisable value.

Betting, including betting on horse racing, and gaming deposits are charged an excise duty of 5 percent on the amount deposited for betting purposes.

This comes a week after KRA announced the deadline for Customs agents to submit applications for renewal of their licences for the 2027 operating period.

In a statement on Monday, September 21, KRA said the licences for Customs agents will expire on December 31, 2026, except for Authorised Economic Operators (AEO) licences issued for a three-year period.

The tax authority reminded Customs agents that the licensing requirements are provided for under the East African Community Customs Management Act and Regulations.

"Provision relating to the licensing of Customs agents are contained in Section 145 of the East African Community Customs Management Act, 2004 and Regulation 149-152 of the East African Community Customs Management Regulation, 2010," the statement read.

KRA said all licensed Customs agents seeking renewal must submit their applications through the Integrated Customs Management System (iCMS) platform.

"The application for renewal is for all Licensed Customs agents and should be submitted through Integrated Customs Management System (iCMS) platform, http://icms.kra.go.ke, on or before 31st October, 2026," the statement added.

KRA urged Customs agents to ensure their applications are submitted by the October 31, 2026 deadline to facilitate the renewal process ahead of the expiry of the current licences.

The authority said applicants must provide several supporting documents alongside their renewal applications.

The required documents include a duly filled Form C20, which is available on the KRA website, as well as the current 2026 Certificate of Registration (CR12/CR13).

Applicants are also required to submit a valid Tax Compliance Certificate for the company and a Certificate of Bond and Debt Clearance.

Other requirements include a copy of the previous C21 licence and a KIFWA Clearance Certificate for the year of application.