This archive report was first published on 7 November 2019.
Kenya Revenue Authority (KRA) is set to introduce new excise taxes on bottled water from next week, leading to a price increase of an average Ksh.7 per litre.
The Water Bottlers Association of Kenya (WBAK) has criticized the implementation of the new taxes, which require manufacturers to install new generation excise stamps on bottled water and other non-alcoholic beverages.
WBAK Chairman Henry Kabogo warned that the increased cost of production will make bottled water unaffordable for many Kenyans, who may be forced to prioritize other essential goods.
Manufacturers have previously expressed concerns about the implementation of the new taxes, citing the additional burden on already high production costs and the impact on the competitiveness of locally produced goods.
The new excise taxes were first introduced in the Excise Duty Bill, 2015, and are expected to raise a projected Ksh.3.6 billion in new revenue streams for the government.
Manufacturers who fail to comply with the new regulations risk having their products confiscated and facing prosecution.
Meanwhile, KRA will allow the sale of already circulating products without the excise stamp until the end of January next year.
