Excise duty is a tax imposed on specific goods manufactured in Kenya or imported into Kenya, as well as on certain services, under the Excise Duty Act, 2015. Goods subject to excise duty include alcoholic beverages, tobacco products, fuel, sweetened beverages, cosmetics, and financial services such as mobile money transfers. Any manufacturer of excisable goods or supplier of excisable services must obtain an excise licence from the Kenya Revenue Authority (KRA) before commencing operations.
Fees and Charges
| Item | Fee (KES) |
|---|---|
| Excise licence registration | Free (processed on iTax) |
| Annual excise licence renewal | Free |
| Late filing penalty | 5% of tax payable or KES 10,000, whichever is higher |
| Excise stamps (cost varies by product category) | Charged per stamp |
Registration is initiated on the KRA iTax portal by clicking the Registration tab, selecting “Other Registration,” and choosing “Excise Licence.” There is no government filing fee; the cost of compliance comes primarily from the stamp and marking obligations.
Excise Stamps and EGMS
| Requirement | Details |
|---|---|
| Excise Goods Management System (EGMS) | Track-and-trace system for excisable goods |
| Products requiring stamps | Alcoholic beverages, tobacco, cosmetics/beauty products (tariff headings 3303–3307) |
| Stamp type | Secure paper stamp (affixed) or secure digital stamp (printed on packaging) |
Remittance Deadlines
| Entity Type | Return and Payment Due Date |
|---|---|
| Licensed manufacturers of alcoholic beverages | 5th day of the following month |
| Betting and gaming services | Within 24 hours of closure of daily transactions |
| All other licensed excise persons | 20th day of the following month |
The Tax Laws (Amendment) Act, 2024 (effective 27 December 2024) adjusted the excise duty rates on a range of goods and services. Manufacturers must apply the updated rates from that date.
Administered by the Kenya Revenue Authority (KRA) under the Excise Duty Act, 2015, Laws of Kenya.