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FIRST SCHEDULE

RATES OF EXCISE DUTY

ShortCuts: Part-I, Part-II, Part-III

PART I – EXCISABLE GOODS


Cont.

2. 
Finance Act, 2018 Effective 1st July 2018
(1) The specific rates of excise duty on excisable goods specified in this Schedule shall be adjusted for inflation every two years at the beginning of every financial year in accordance with this paragraph.

Finance Act, 2018 Effective 1 st July 2018
(2) Each rate of excise duty specified in column 2 of the table in paragraph 1 shall be replaced by the rate of excise duty computed by reference to the following formula –
Finance Act, 2016 Effective 9th June 2016
A x B 
A(1 + B)
where

  • A is the rate of excise duty on the day immediately before the a d j u s t m e n t d a y ; and 
  • B is the adjustment factor for the adjustment day, calculated as the average rate of monthly inflation of the preceding financial year. 

PART II – EXCISABLE SERVICES 

1. Mobile cellular phone services shall be charged excise duty at the rate of ten percent of their excisable value.*
Telephone and internet data services shall be charged excise duty at a rate of fifteen percent**  the rate of twenty percent** fifteen percent  of their excisable value.  Finance Act, 2018 Effective 1 st July 2018*  (Finance Act 2021- wef-01July2021**) (Finance Act 2023 wef 1st-July-2023 s47***) 

2. Other wireless telephone services shall be charged excise duty at the rate of ten percent of their excisable value.
Excise duty in fees charged for money transfer services by banks, money transfer agencies and other financial service providers shall be twenty percent fifteen percent* of their excisable value. (Finance Act 2023 wef 1st-July-2023 s47*) 

3. Excise duty on fees charged for money transfer services by cellular phone service providers, banks, money transfers agencies and other financial service providers shall be ten percent of their excisable value.
Excise duty on fees charged for money transfer services by cellular phone service providers, shall be twelve percent or payment service provides licensed under the National Payment System Act, 2011, shall be fifteen percent* of the excisable value. Finance Act, 2018 Effective 1 st July 2018  (Finance Act 2023 wef 1st-July-2023 s47*) 


4. Excise duty on other fees charged by financial institutions shall be ten percent of their excisable value. Finance Act, 2018 Effective 1st July 2018
Excise duty on other fees charged by financial institutions shall be twenty percent of their excisable value. Finance Act, 2018 Effective 1st July 2018
4A. Excise duty on betting shall be seven-point five twelve point five* percent of the amount wagered or staked.(Finance Act 2021- wef-01July2021) (Finance Act 2023 wef 1st-July-2023 s47*) 

4B. Excise duty on gaming shall be seven-point five twelve point five* percent of the amount wagered or staked. (Finance Act 2021- wef-01July2021) (Finance Act 2023 wef 1st-July-2023 s47*) 

4C. Excise duty on price competition shall be seven-point five twelve point five*  percent of the amount paid or charged to participate in a prize competition. (Finance Act 2021- wef-01July2021)  (Finance Act 2023 wef 1st-July-2023 s47*) 

4D. Excise duty on lottery (excluding charitable lotteries) shall be seven-point five twelve point five* percent of the amount paid or charged to buy the lottery ticket. (Finance Act 2021- wef-01July2021) (Finance Act 2023 wef 1st-July-2023 s47*) 

5. Excise duty on betting shall be twenty percent of the amount wagered or staked.  Finance Act, 2019 effective 7 th November 2019 FA2020, wef 30June20

6. missing
8. Excise duty on fees charged on advertisement on television, print media, billboards and radio stations on alcoholic beverages, betting, gaming, lotteries and prize competitions shall be at the rate of fifteen per cent. (Finance Act 2023 wef 1st-July-2023 s47)

PART III – INTERPRETATION OF SCHEDULE 

In this Schedule Statutory Amendments Act 11 of 2017

“Adjustment day” means day of 1st October July of every year; Finance Act, 2019 effective 7th November 2019

"amount wagered or staked" means the amount of money placed by a person for an outcome in a betting or gaming transaction. Finance Act, 2019 effective 7th November 2019 ,  (Finance Act 2023 wef 1st-July-2023 s47)

“beer” includes ale, porter, and any other description of beer and any liquor, including beer substitute, which is produced as a result of the alcoholic fermentation of an extract derived from barley, malt, a cereal grain, starch or saccharine matter and hops or hops substitute, in potable water with other substitute ingredients and which contains more than two per centum of proof spirit, but does not include –
  • (a) any beer brewed by any person for personal consumption and which is not offered for sale; or 
  • (b) any kind of beer that, by order of the Cabinet Secretary, is excluded from the provisions of this Act; 
“cigar” means a cigar, cheroot or cigarillo prepared from tobacco or tobacco substitutes;

“cigarette” means—
  • (a) rolls of tobacco capable of being smoked as they are and which are not cigars or cigarillos; 
  • (b) rolls of tobacco which, by simple non-industrial handling, are inserted into cigarette-paper tubes; or 
  • (c) rolls of tobacco that, by simple non-industrial handling, are wrapped in cigarette paper; 
“cigarillos” means
(a) rolls of tobacco made entirely of natural tobacco; or
(b) rolls of tobacco with an outer wrapper of natural tobacco;

“electronic cigarettes” means electronic nicotine delivery system whether or not containing tobacco or tobacco substitutes and includes electronic cigarette cartridges;

“financial institution” means—
  • (a) a person licensed under— (i) the Banking Act; (ii) the Insurance Act; (iii) the Central Bank of Kenya Act; or (iv) the Micro Finance Act, 2006; 
  • (b) a Sacco society registered under the Sacco Societies Act, 2008; or
  • (c) the Kenya Post Office Savings Bank established the Kenya Post Office Savings Bank Act; 

“financial year” means the period of twelve months ending on the 30th June of every year;

“other fees” includes any fees, charges or commissions charged by financial institutions relating to their licensed financial institutions licensed activities, but does not include interest on loan or return on loan or an insurance premium or premium based or related commissions “or fees or commissions earned in respect of a loan*** or any share of profit or an insurance premium or premium based or related commissions specified in the Insurance Act or regulations made thereunder.; Finance Act, 2019 effective 7 th November 2019, (TaxLAA-No1-2020 wef-25April2020) , (Finance Act 2021- wef-01July2021***)

“inflation” means the average annual inflation rate in a financial year;

“money transfer services” includes services of sending and withdrawal of money;

Finance Act, 2017 Effective 3rd April 2017
“powdered beer” means any powder, crystals, or any other dry substance which after being mixed with water or any other non-alcoholic beverage ferments to, or otherwise becomes an alcoholic beverage.

“proof” means a standard of strength of distilled alcoholic liquors (or of vinegar);

“proof spirit” means spirit that at a temperature of 10.55 degrees Centigrade weighs 12/13th of an equal volume of distilled water at the same temperature;

“rate of monthly inflation in each month” means the movement in the consumer price index number published by the Kenya National Bureau of Statistics for that month when compared to the same month in the preceding year;

“financial year” means the period of twelve months ending on the 30th June of every year;

“wine” means a liquor of a strength not exceeding 50 degrees of proof that is made from fruit and sugar or from fruit and sugar mixed with any other material and which has undergone a process of fermentation and includes mead.

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