KRA adjusts taxes on 29 goods and services affecting Kenyans [Full List]

The Kenya Revenue Authority (KRA) has announced a sweeping adjustment and introduction of excise duty rates on a wide range of goods and services following the enactment of the Finance Act, 2025. 

The new rates, effective from 1st July 2025, are expected to affect both importers and consumers.

The announcement, issued through a public notice, outlines revised rates for excisable goods such as paper products, glassware, tiles, adhesives, and aluminium, as well as services like betting, gaming, and virtual asset transactions.

KRA has reminded all manufacturers, importers, and service providers to apply for an excise licence and register where applicable. 

READ ALSO: KRA deploys tool to catch shady traders filing nil returns

Taxes collected must be remitted within 24 hours of transaction closure for betting and gaming, by the 5th day of the following month for alcoholic beverages, and by the 20th of the following month for all other goods and services.

The Commissioner for Micro and Small Taxpayers thanked businesses for their continued cooperation, reiterating the importance of timely remittance.

As Kenya tightens its fiscal framework, the new excise regime is expected to boost revenue collection but may also result in increased retail prices across affected sectors.

READ ALSO: Understanding zero-rated vs tax-exempt goods

Adjusted Excise Duty Rates (Effective 1st July 2025)

1. Imported paper or paperboard labels - Rate: 25% or Sh150 per kg, whichever is higher.

2. Imported cartons, boxes, and cases of corrugated and non-corrugated paper or paperboard - Rate: 25%.

3. Imported glass bottles (excluding pharmaceutical packaging) - Rate: 35% or Sh40 per kg, whichever is higher.

4. Imported ceramic flags and paving, hearth or wall tiles; ceramic mosaic cubes, finishing ceramics - Rate: 5% of custom value or Sh200 per square metre, whichever is higher.

5. Printed self-adhesive paper - Rate: 25% or Sh150 per kg, whichever is higher.

6. Gummed paper and paperboard - Rate: 25% or  Sh150 per kg, whichever is higher.

7. Imported float glass and polished/ground glass sheets - Rate: 35% of custom value or Sh200 per kg, whichever is higher.

Newly Introduced Excise Duty Rates (Effective 1st July 2025)

1. Self-adhesive plastic films, tape, and flat plastic shapes - Rate: 25% of excisable value or Sh200 per kg, whichever is higher.

2. Printed polymers of ethylene - Rate: 25% of excisable value or Sh200 per kg, whichever is higher.

3. Printed polymers of vinyl chloride - Rate: 25% of excisable value or Sh200 per kg, whichever is higher.

4. Printed polycarbonates, alkyd resins, polyester sheets/films - Rate: 25% of excisable value or Sh200 per kg, whichever is higher.

5. Printed cellular plastics - Rate: 25% of excisable value or Sh200 per kg, whichever is higher.

6. Imported tea, flavoured or not - Rate: 25% of excisable value.

7. Unbleached paper and paperboard rolls/sheets (kraftliner) - Rate: 25% of excisable value or Sh50 per kg, whichever is higher.

8. Kraft paper ≤150g/m² - Rate: 25% of excisable value or Sh50 per kg, whichever is higher.

9. Kraft paper 150g/m² to <225g/m² - Rate: 25% of excisable value or Sh50 per kg, whichever is higher.

10. Kraft paper ≥225g/m² - Rate: 25% of excisable value or Sh50 per kg, whichever is higher.

11. Imported decorative/bent/worked glass - Rate: 35% of excisable value or Sh500 per square metre, whichever is higher.

12. Imported safety glass - Rate: 35% of excisable value or Sh500 per square metre, whichever is higher.

13. Multiple-walled insulating glass - Rate: 35% of excisable value or Sh500 per square metre, whichever is higher.

14. Fully built and semi-built direct air capture machines - Rate: 25% of excisable value.

15. Aluminium profiles, fabricated doors and windows - Rate: 25% of excisable value or Kshs. 400 per kg, whichever is higher.

16. Non-refillable lighters - Rate: 25% of excisable value or Sh500 per unit.

17. Spirits exceeding 90% alcohol strength - Rate: Sh500 per litre.

Excise Duty Rates for Services (Effective 1st July 2025)

1. Betting (other than horse racing) - Rate: 5% of the amount deposited into a customer’s betting wallet (down from 15% of the amount wagered or staked).

2. Gaming - Rate: 5% of the amount deposited into a customer’s gaming wallet (down from 15% of the amount wagered or staked).

3. Prize competition - Rate: 5% of the amount paid or charged to participate in a prize competition (down from 15% of the amount paid or charged to participate in a competition).

4. Lottery (excluding charitable lotteries) - Rate: 5% of the amount paid or charged to buy a lottery ticket (down from 15%).

5. Fees charged on virtual asset transactions by virtual asset providers - Rate: 10% of the excisable value.