The Kenya Revenue Authority (KRA) has announced revised excise duty rates on various imported goods and services, following the enactment of the Finance Act, 2025. The new rates, which came into effect on July 1, 2025, affect manufacturers, importers, and suppliers across multiple sectors including packaging, construction materials, and gaming services.
KRA issued a public notice notifying businesses to implement the revised excise rates and ensure timely remittance of tax to the Commissioner.
Key Excise Duty Adjustments on Imported Goods
Some of the most notable changes in the excise structure include:
| Product | Previous Rate | New Rate (Effective July 1, 2025) |
|---|---|---|
| Imported labels and paperboard (Tariff 4821.10.00 / 4821.90.00) | 25% or Ksh.150/kg (whichever is higher) | 25% or Ksh.200/kg (whichever is higher) |
| Imported cartons, boxes, folding cases (Tariff 4819 series) | 25% | 25% or Ksh.200/kg (whichever is higher) |
| Imported glass bottles (excluding pharma use) | 35% | 35% or Ksh.40/kg (whichever is higher) |
| Imported ceramic tiles (Tariff 6907) | 5% or Ksh.200/sqm | 5% or Ksh.300/sqm (whichever is higher) |
| Printed self-adhesive paper (Tariff 4811.41.90) | 25% or Ksh.150/kg | 25% of excisable value or Ksh.200/kg |
| Gummed paper/board (Tariff 4811.49.00) | 25% or Ksh.150/kg | 25% of excisable value or Ksh.200/kg |
| Imported float glass (Tariff 7005) | 35% or Ksh.200/kg | 35% of excisable value or Ksh.500/sqm |
The revised duties largely target imported products, with exemptions granted to goods originating from East African Community (EAC) Partner States that comply with EAC Rules of Origin.
Major Overhaul in Gaming and Betting Excise Taxation
The Finance Act 2025 has also significantly changed how betting, gaming, prize competitions, and lotteries are taxed:
| Service | Old Rate | New Rate (From July 1, 2025) |
|---|---|---|
| Betting (excluding horse racing) | 15% of amount wagered | 5% on the amount deposited into customer wallets |
| Gaming | 15% of amount wagered | 5% on the amount deposited into gaming wallets |
| Prize Competitions | 15% of entry fee | 5% of the amount charged to participate |
| Lotteries (excluding charitable ones) | 15% of ticket price | 5% of the ticket price |
These changes mark a shift from taxing winnings or wagers to taxing deposits, a move analysts say could affect both revenue generation and player behavior in the online gambling sector.
Remittance Requirements
- For betting and gaming: Tax must be remitted within 24 hours from the close of business each day.
- For all other excisable goods and services: Payment is due on or before the 20th of the month following the month in which the tax was collected.
KRA has urged all affected manufacturers, importers, and service providers to implement the new rates without delay and ensure compliance with updated remittance timelines.
Failure to comply with the revised structure could attract penalties and enforcement measures, as KRA moves to bolster domestic revenue amid growing fiscal pressure.
