This archive report was first published on 4 September 2019.
On September 4, 2019, the Water Bottlers Association of Kenya (WBAK) warned consumers of an impending 80 percent price increase for 20-liter water containers due to a new tax.
The association, which represents 250 bottlers and refillers, employs 30,000 people directly and indirectly. WBAK chairperson Henry Kabogo stated that the new excise tax would lead to a retail price of between Sh250 and Sh350 increasing to between Sh450 and Sh550.
Mr. Kabogo expressed concerns that some water bottling firms may not cope with the higher production costs and might be compelled to shut down if the new system is implemented.
The Kenya Revenue Authority (KRA) had initially planned to roll out the Excisable Goods Management System (EGMS) on September 1, requiring manufacturers to affix new generation excise stamps on bottled water, juices, and other beverages.
However, the KRA postponed the rollout, citing the need to address unregulated products and enhance revenues. The authority had expected to collect an additional Sh3.6 billion after the introduction of new excise stamps.
WBAK welcomed the postponement, urging the taxman to consult with stakeholders before implementing the new system.
