The Excise Duty (Remission of Excise Duty) Regulations, 2017

The Excise Duty (Excisable Goods Management System) Regulations, 2017 have recently been published in the Kenya Gazette Supplement no. 44 under Legal Notice No. 52. The Regulations revoke the Customs and Excise (Remission of Excise Duty) Regulations, 2013.

Percentage of Excise Duty Remission

The remission of excise duty is granted under the Regulations at 80% (eighty per centum) upon application by a manufacturer, with respect to beer made from sorghum, millet or cassava or any other agricultural produce grown in Kenya. The Regulations do not apply in respect of beer made from barley.

Application Requirements by a Manufacturer

A manufacturer applying for remission under the Regulations shall be required to;

  • Be tax compliant;
  • Have a valid excise license to produce beer;
  • Have a fully installed Excisable Goods Management System;
  • Ensure that the beer has at least 75% (seventy five per centum) content of sorghum, millet or cassava or any other agricultural products grown in Kenya excluding sugar and barley;
  • Pack the beer in a pressurized container of at least 30 litres (thirty litres) or such other container and quantity as the Cabinet Secretary may approve;
  • Sell the beer at not more than 100/- (one hundred) shillings per litre;
  • Meet other regulatory requirements related to the manufacture and distribution of beer including the requirements of public health and Kenya Bureau of Standards; and
  • Comply with such other conditions as the Commissioner may impose conditions necessary for remission of excise duty.

Requirement for Detailed Return of the Quantities and Types

Manufacturers who have been granted remission under these Regulations shall provide to the Commissioner in the prescribed manner a detailed return of the quantities and types of;

  • Raw materials used;
  • Beer manufactured; and
  • Beer sold.

In addition, manufacturers are required to submit a detailed return once in each month or at such other intervals as the Commissioner may require returns.

Any manufacturer who provides false or misleading information and is granted a remission under the Regulations shall;

  • Be required to refund the excise duty remitted upon demand by the Commissioner; and
  • An additional fine may be imposed under the Excise Act or any other written law.

In case of any inquiries on the Regulations please contact miriam.bomett@kam.co.ke. For application of Duty Remission, please contact halima.khalla@kam.co.ke

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