This archive report was first published on 31 October 2019.
Kenya Revenue Authority (KRA) has announced the implementation of the Excisable Goods Management System (EGMS) to collect Excise Tax on bottled water, juices, energy drinks, soda, and other non-alcoholic beverages.
As of November 13, 2019, all licensed manufacturers and importers of these goods must affix an Excise Stamp in accordance with Section 28 of the Excise Duty Act 2015.
According to a public notice dated October 31, 2019, KRA stated that only licensed manufacturers and importers can obtain excise stamps, and that products manufactured or imported before November 13, 2019, will be allowed to market without stamps until January 31, 2020.
Any products manufactured or imported on or after November 13, 2019, without bearing the stamp, or those before November 13, 2019, found in the market after January 31, 2020, without the excise stamp, will be seized and the offenders prosecuted.
The implementation of the EGMS and Excise Tax is expected to raise costs by between 50 cents and Sh.2.80 per bottle.
