Excise Duty (Amendment) Bill, 2025 signed into law

𝐓𝐡𝐮𝐫𝐬𝐝𝐚𝐲, 𝐀𝐩𝐫𝐢𝐥 𝟏𝟕𝐭𝐡 𝟐𝟎𝟐𝟓

The Excise Duty (Amendment) Bill, 2025 has been signed into law, a move that is expected to lower electricity connection costs and enhance the reliability of power supply across the country.

The law, sponsored by the Leader of the Majority Party, Hon. Kimani Ichung’wah was published on 6th March 2025 and read a first time in the National Assembly on 16th March 2025. It was passed with amendments on 15th April 2025 by the National Assembly.

The Excise Duty (Amendment) Act, 2025 amends the Excise Duty Act, CAP 472, by removing the 25% excise duty previously imposed on imported fully assembled electric transformers and their parts. 

This amendment is set to reduce electricity connection costs for consumers by lowering the cost of transformers, which are essential components in grid infrastructure. 

Additionally, the new Act is set to bring down electricity tariffs by easing the cost burden of transformer replacements. By enabling the Kenya Power and Lighting Company (KPLC) to procure adequate stocks of transformers within its current budget, the law will help avert power outages and ensure uninterrupted service to consumers.

Beyond the energy sector, the Act also corrects the classification of imported float glass by aligning it with the appropriate tariff code 7005. This amendment ensures consistency within Kenya’s tax regime and harmonises it with the East African Community Common External Tariff (EAC CET), offering greater predictability and compliance in trade.