What Has Changed?
The Finance Act, 2026 clarified the Excise Duty rates applicable to specified imported ceramic products under tariff headings 6907 and 6910.
The Act introduced a hybrid Excise Duty rate of:
- 5% of the excisable value; or
- KES 50 per kilogram,
whichever is higher.
The provision covers specified ceramic tiles and finishing ceramics under tariff heading 6907, as well as ceramic sanitary fixtures under tariff heading 6910.
The Finance Bill, 2026 had proposed a flat rate of 5% of the excisable value. However, the final Act retained the additional specific-rate component.
What Are the Implications?
- Minimum duty threshold: The KES 50 per kilogram rate ensures that the applicable duty does not fall below that amount where it exceeds the 5% calculation.
- Higher costs for some imports: Depending on the product’s value and weight, importers may pay more under the hybrid rate than under a 5% rate alone.
- Pricing considerations: Importers, distributors and retailers should assess the impact on landed costs and selling prices.
- Compliance: Businesses must apply the correct tariff classification and compare both calculations to determine the higher amount.
What Should Businesses Do?
Importers of ceramic tiles and sanitary fixtures should review their customs declarations, product classifications, weights and Excise Duty computations to ensure the correct rate is applied.
Source: Finance Act, 2026.
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