This archive report was first published on 11 November 2019.
Kenya's consumers of bottled water are facing a price hike, effective November 13, 2019, as the Kenya Revenue Authority (KRA) begins enforcing new excise taxes on the non-alcoholic beverage.
The price of bottled water is expected to rise by an average of Sh7 per litre, factoring in the excise duty of Sh5 per litre, Value Added Tax (VAT), and the cost of the newly introduced Electronic Goods Management System (EGMS) stamp by KRA.
Water Bottlers Association of Kenya (WBAK) expressed opposition to the move, stating that it would make bottled water unaffordable to citizens. WBAK Organizing Secretary Simon Wanjohi said, 'We want to tell the government that we are still opposed to water being charged excise duty because we know excise tax as sin tax and yet water is a basic human right. When you charge an excise tax on water up to Sh5.40 per every litre of water purified, you are simply making clean water unaffordable to the citizens!'
The association also called on KRA to ensure a level playing field for all businesses by upscaling its surveillance programs. WBAK Chairman Henry Kabogo added, 'We urge KRA to play its facilitation role and resolve any potential setbacks that would affect the conduct of our businesses.'
