What Has Changed?
The Finance Act, 2026 increased the Excise Duty rate on imported sugar from KES 7.50 to KES 40 per kilogram.
The change applies to imported sugar, excluding sugar imported by a registered pharmaceutical manufacturer and raw sugar imported for processing by a licensed sugar refinery.
What Does This Mean?
- The Excise Duty increases by KES 32.50 per kilogram.
- Importers of affected sugar will face a higher Excise Duty cost.
- Raw sugar imported for processing by licensed sugar refineries remains excluded under the specified provision.
Example
For an importation of 1,000 kg of sugar:
Before the change:
1,000 kg × KES 7.50 = KES 7,500
Under the new rate:
1,000 kg × KES 40 = KES 40,000
Additional Excise Duty: KES 32,500
Why Does This Matter?
The increase signals a policy effort to encourage local sugar production and manufacturing. Importers and businesses that depend on imported sugar should review their landed costs, budgets and pricing to account for the higher duty.
The applicable exclusions should be confirmed before calculating the Excise Duty payable.
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