Kenya: Revenue authority proposes higher tobacco stamp duties.

In June 2022, the President assented to the Finance Bill 2022 thereby activating various proposals to Kenya’s fiscal governance regimes. Among the changes effected were the increased excise duty rates for various tobacco and nicotine products such as electronic cigarettes and the liquid nicotine therein, cartridges for use in electronic cigarettes, cigarettes with/without filters, oral nicotine pouches and tobacco substitutes, extracts and essences. As a result of strong advocacy, this was the first time in three years that such increases in excise duty among a wide range of products were approved by the parliament in the mainstream Finance Act ensuing the passage of the main annual budget.

In November of the same year, the Commissioner General of the Kenya Revenue Authority made further adjustments to these excise tax rates based on the annual inflation rate of 6.3%. The increased taxes on specific tobacco products came into effect as outlined in the First Schedule of the Excise Duty Act, 2015. As of February 2023, no new fiscal policies have been proposed or enacted that would affect tobacco products. While the tobacco industry continues to wage against effective tobacco taxes. As the tobacco industry continues its unrelenting opposition against tobacco taxation, the International Institute for Legislative Affairs, ATCA’s member in Kenya, holds steadfast in the fight against tobacco.