Section 29

Refunds 

(1) If excise duty has been paid by a person on excisable goods manufactured in, or imported into, Kenya, the Commissioner shall, on written application by the person, refund the excise duty paid if satisfied that—

• (a) before being consumed or used in Kenya – 
• (i) the goods have been damaged or stolen during the voyage or transportation to Kenya;
• (ii) the goods have been damaged or destroyed while subject to excise control;
• (iii) the buyer has returned the goods to the seller in accordance with the contract of sale; or

• (b) the excise duty has been paid in respect of spirits that have subsequently been used by a licensed manufacturer to manufacture unexcisable goods.   Finance Act, 2017 Effective 3rd April 2017
• (b)the excise duty has been paid in respect of spirits or illuminating kerosene that have subsequently been used by a licensed or registered manufacturer to manufacture unexcisable goods. Finance Act, 2017 Effective 3rd April 2017

(2) A licensed person may apply to the Commissioner for a refund of excise duty if the person has accounted for and paid excise duty on excisable goods or excisable services but has not received any payment from the purchaser for the goods or services, and the Commissioner may refund the excise duty if satisfied that payment for the goods or services has not been received.

(3) An application for a refund under subsection (2) may be made on the earlier of –

• (a) three years from the date of the sale of the goods or services; or 
• (b) the purchaser becoming legally insolvent. 

(4) An application for a refund under this section shall be––

• (a) in the prescribed form; and 
• (b) lodged with the Commissioner in the prescribed manner– 

(i) within twelve months from the date of payment of the duty, in the case of an application under subsection (1); or
(ii) within twelve months from the earlier date specified in subsection (3), in the case of an application under subsection (2). No. 1 of 2005

 (5) The amount of a refund of excise duty payable under this section shall be made in accordance with the Tax Procedures Act.

(6) If excise duty has been paid on the importation of excisable goods that have been subsequently exported, section 138 of the East African Community Customs Management Act, 2004 shall apply to the export.

(7) If excise duty has been refunded under subsection (5) and the licensed person has subsequently recovered the whole or part of the excise duty from the purchaser of the goods or services, the licensed person shall repay the refunded excise duty to the Commissioner to the extent that it has been recovered within thirty days of the recovery.