The Kenya Revenue Authority (KRA) has unveiled guidelines for the return of unused excise stamps held by bottled water manufacturers and importers.
KRA’s return of unused excise stamps follows the removal of excise duty on bottled water on July 1, ending a tax requirement that had compelled manufacturers and importers to affix excise stamps on their products.
Under the Finance Act, 2026, bottled water was removed from the First Schedule of the Excise Duty Act.
However, the Authority has clarified that eligible businesses holding unused V4 excise stamps purchased before the law changed can seek reimbursement.
According to KRA, the exercise covers both full excise stamp reels and individual paper stamps that remained unused when the tax was abolished.
The authority advised that affected taxpayers must initiate the process electronically through the Excise Goods Management System (EGMS) before physically surrendering the stamps.
“The taxpayer shall be required to initiate the return of the unused excise stamps through their EGMS account with valid credentials and the necessary system rights to access the Operations module on EGMS to initiate the return of the unused excise stamps,” KRA guidelines direct.
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How to Return Unused V4 Excise Stamps and Requirements
Eligible taxpayers will be required to submit a return request through EGMS, after which the authority will review the application.
Successful applications will then proceed to physical verification by the taxpayer’s respective Tax Service Office before the stamps are surrendered at the KRA Vault.
Once the stamps are received and approved in the system, the Authority will provide further guidance regarding reimbursement where applicable.
Businesses whose applications are rejected will receive notifications explaining the reasons for the decision through their registered EGMS email addresses.
Businesses holding complete packaging units, commonly known as stamp reels, will be required to use the “Return of Packaging Units” function within EGMS.
Taxpayers will be required to select the relevant manufacturer or importer site and indicate the reason for return.
Further, the returning taxpayers must enter the Packaging Unit identification number before submitting the application for approval.
After submission, the system then validates the details and generates a return request for KRA review.
On the other hand, for businesses with loose stamps or partial inventories, KRA has provided a separate process under the “Return of Stamps” function.
Taxpayers will be required to enter the serial numbers of the unused stamps, either individually or as a range where the numbers are consecutive.
Once entered and confirmed, the application is submitted electronically for processing.
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KRA Verification Process
KRA has emphasized that submitting an application through EGMS does not complete the process.
Before stamps can be accepted, officers from the taxpayer’s Tax Service Office must physically verify the quantities and serial numbers against what was declared in the system.
After verification, taxpayers will be required to book appointments for physical delivery of the stamps to the KRA Vault at Times Tower.
Reimbursement Eligibility
To determine whether a taxpayer qualifies, the authority is expected to verify the authenticity of the stamps.
Additionally, KRA will confirm ownership, match serial numbers to EGMS records, and ensure quantities physically surrendered correspond with declared inventories.
The authority will also review compliance with applicable legal and administrative requirements governing the return exercise.
Taxpayers shall, upon conclusion of the process, pay taxes due, initiate the process of cancellation of their Excise license, import registration certificate, and retirement of Excise Security Bond.
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