Kenyans will begin paying more for fuel, cigarettes, bottled drinking water, beer, fruit juice and other excisable products, effective October 1st, 2021.
This follows a legal notice published by the Kenya Revenue Authority(KRA), allowing the Commissioner-General to adjust the prices of these products by 4.97%, termed as inflation adjustment on excise duty charged on products.
Kenyans to feel the pinch beginning October 2021
In the new schedule, the price of a litre of premium gasoline will attract an excise duty rate of KSh 23.04 from the current KSh 21.95.
Kenyans will pay excise duty of KSh 6.66 for a litre of jet fuel will attract excise duty of KSh 6.66 from the current KSh 6.35, while duty on diesel will be adjusted to KSh 4.28 per litre from the current KSh 4.08.
The excise tax on motorcycles (motorcycle ambulances and locally assembled bikes are exempted) will increase from KSh11,608 to KSh12,185 from October.
Kenyans will also pay more for Bottled or similarly packaged waters and other non-alcoholic beverages (not including fruit or vegetable juices) whose excise duty will rise from the current KSh 5.74 per litre to KShs. 6.03 per litre.
Beer, cider, perry, mead, opaque beer and mixtures of fermented beverages with non-alcoholic beverages and spirituous beverages of an alcoholic strength not exceeding 6% will attract a new excise duty of KSh 121.85 from the current KSh Shs. 116.08 per litre.
The Commissioner is required under the Excise Duty Act 2015 to adjust the Excise Duty rates of products annually to consider the rate of inflation.
This will now be subject to the approval of the Cabinet Secretary National Treasury and Planning.
Manufacturers and importers of Excisable goods affected of affected items have been informed of this duty adjustment.
KRA has invited the Kenyans and other interested stakeholders to submit their views on inflation adjustment of specific duty rates, to reach the Commissioner-General by Monday, 13th September 2021.