The Kenya Revenue Authority (KRA) has made a major change that affects bottled water manufacturers across the country — but it comes with a crucial deadline that many are rushing to meet.
On July 1, 2026, KRA officially removed excise duty on bottled water, following the enactment of the Finance Act, 2026. This means bottled water is now exempt from excise tax, and manufacturers no longer need to affix excise stamps on their products.
However — and this is the part that has many searching for answers right now — this removal does NOT mean you skip filing your June 2026 returns.
If you’re a manufacturer, importer, or excise licensee, you are still required by law to file your June 2026 Excise Duty Returns and pay any taxes owed for that period. The deadline? July 20, 2026.
In this guide, I’ll walk you through exactly how to file those returns on the iTax portal, step by step.
Why Are People Searching for “Excise Duty Returns June 2026” Right Now?
According to Google Trends Kenya, “excise duty returns June 2026” is trending with over 2,000 searches in the past 24 hours alone.
The reason is simple: confusion. Many manufacturers are asking:
- “Since excise duty on water is gone, do I still file?”
- “What about the stamps I already have?”
- “How do I file if it’s now zero-rated?”
The answer is yes — you must file. And here’s everything you need to know.
What Changed for Bottled Water Excise Duty?
- Effective July 1, 2026: Excise duty on bottled water was scrapped.
- Excise stamps are no longer required for bottled water going forward.
- KRA will issue new guidelines on how to return unutilized excise stamps and decommission existing digital stamps.
But for the June 2026 tax period (which covers sales and production from June 1–30, 2026), the old rules apply. You must declare your excisable value and pay any tax due for that month.
Step-by-Step Guide: How to File June 2026 Excise Duty Returns on iTax
Follow these simple steps to file your return online. You don’t need a consultant — it’s straightforward if you follow the process.
Step 1: Log in to the KRA iTax Portal
- Go to https://itax.kra.go.ke
- Enter your KRA PIN and password
- Click Login
If you’ve forgotten your password, use the “Forgot Password” option to reset it.
Step 2: Navigate to the Returns Section
- On the dashboard, click on “Returns” from the main menu
- Select “File Returns”
- Choose “Simplified Returns” from the drop-down options
Step 3: Select the Correct Return Type
- Under Return Type, select “Excise (Services only).”
- This is the correct category for excise duty on goods
- Your business details (PIN and license number) will auto-populate
Step 4: Fill in the Return Details
You’ll need to provide:
- Tax Period: Select June 2026
- Excisable Value: Enter the total value of goods subject to excise duty for June 2026 (this includes bottled water sales for that month)
- Tax Due: The system will auto-calculate the excise tax based on the value entered
- Double-check all figures before proceeding
Step 5: Submit and Get Your Acknowledgement Receipt
- Review all the details
- Click “Submit”
- The system will generate an Acknowledgement Receipt
- Download and save this receipt — it’s proof that you filed on time
Step 6: Make Your Payment
You can pay the excise duty using any of these methods:
- M-PESA Paybill: 222222 (use your KRA PIN as the account number)
- KRA Agent Banks: Equity, KCB, Co-op Bank, and others
- Online Banking: Through your bank’s portal
The payment deadline is also July 20, 2026. Make sure your payment reflects in the KRA system by this date.
What Happens If You File Late?
KRA enforces strict penalties:
| Offense | Penalty |
| Late filing | 5% of the tax due or KES 10,000, whichever is higher |
| Late payment | 20% penalty per annum (pro-rated) + interest |
| Failure to file | Potential audit and prosecution |
Don’t risk it — file and pay on time.
What About Excise Stamps Already Purchased?
KRA has confirmed that they will issue new guidelines on:
- How to return unutilized excise stamps
- How to decommission digital stamps already in use
Keep an eye on the KRA website and your iTax messages for updates. I’ll also update this article when those guidelines are released.
Frequently Asked Questions
1. Do I need to file excise returns for June 2026 if I only sell bottled water?
Yes. If you manufactured or imported bottled water in June 2026, you must file and pay excise duty for that month.
2. What if I don’t owe any tax for June?
You still need to file a nil return. The filing requirement does not go away just because no tax is due.
3. How do I check my KRA returns status?
Log in to iTax and go to “Returns” > “View Returns” to see all your filing history and statuses.
4. Will bottled water require excise stamps going forward?
No. Effective July 1, 2026, bottled water is completely exempt from excise duty and excise stamps.
5. Where can I get more help?
- Call KRA Contact Centre: 0711-099-999
- Visit any KRA Huduma Centre
- Or leave a comment below — I’ll respond within 24 hours
Final Word
The removal of excise duty on bottled water is welcome news for manufacturers and consumers alike. But don’t let the celebration make you forget the July 20, 2026, deadline for filing your June returns.
Follow this guide, file on time, and avoid unnecessary penalties. If you found this article helpful, share it with other manufacturers or business owners who might need it.
📌 Related Articles You Might Find Useful:
- How to File KRA Returns Online Without a Consultant
- How to Register for SHA in 2026
- How to Check Your KRA PIN Status
📩 Have questions? Drop them in the comments below.
