The Excise Duty (Amendment) Bill, 2025
Status Timeline
Proposed
Done ยท 17 Sep 2026
Public Review
Done
Debate
Done
Executive
Done
Enacted
Active now
Retroactive Effective Date
Clause 1 of the Bill states that the amendment will be deemed to have entered into operation retroactively on 27th December, 2024.
Elimination of 25% Excise Duty on Transformers
The Bill deletes the 25% excise duty rate previously applied to imported fully assembled electric transformers and their parts. The specific tariff codes affected are:
- 8504.10.00
- 8504.21.00
- 8504.22.00
- 8504.23.00
- 8504.31.00
- 8504.32.00
- 8504.34.00
Bill No.
No. 7 of 2025
Gazette No.
Supplement No. 32 of 2025
Sponsor
Kimani Ichung'wah
Background
The 25% excise duty on imported fully assembled electric transformers was originally introduced under the Tax Laws (Amendment) Bill, 2024, with the goal of protecting and supporting local transformer assemblers. However, the operational reality of this tax was an increase in the cost of importing key parts, which negatively affected the local manufacture, assembly, and supply of transformers. To address these issues, lower the overall cost of electricity, and assist the Kenya Power and Lighting Company in extending power connectivity, this Bill seeks to repeal that specific excise tax.
Key Amendments
- Amendment of the First Schedule to Cap. 472: Clause 2 of the Bill deletes the entry taxing 'Imported Fully Assembled Electric transformers and parts' at a rate of 25%.
- Tariff Codes Exempted: The deletion applies to parts and assembled units under tariff codes 8504.10.00, 8504.21.00, 8504.22.00, 8504.23.00, 8504.31.00, 8504.32.00, and 8504.34.00.
Transitional Provisions
- Retroactive Commencement: The provisions of this Amendment Act are slated to take effect retroactively from 27th December, 2024.
Gazettement
The Excise Duty (Amendment) Bill, 2025 was published in the Kenya Gazette No. 32.
First Reading
The bill was read a First Time in the National Assembly.
Second Reading
The bill was read a Second Time and debated in the National Assembly.
Committee of the Whole House
The bill was considered clause-by-clause in the Committee of the Whole House.
Third Reading
The bill was read a Third Time and passed by the National Assembly.
Presidential Assent
The President assented to the Excise Duty (Amendment) Bill, 2025, signing it into law.