NAIROBI, Kenya, Oct 29 – Imported ceramic tile costs could fall following a change in Kenya’s excise duty regime, with the government replacing weight-based taxation with a charge tied to the surface area of tiles under the Tax Laws (Amendment) Act, 2026.

The law, which took effect on October 14, introduces a minimum excise duty of Sh400 per square metre or 5 per cent of the excisable value, whichever is higher, changing how importers calculate the tax payable on ceramic tiles used in residential and commercial construction.

The amendment is intended to ease pressure on building costs after the previous weight-based system attracted criticism from importers over the burden imposed on relatively heavy products.

“5% of the excisable value or KSh. 400 per square meter, whichever is higher.”

The amendment also revises excise duty on imported ceramic sanitary fixtures, including sinks, wash basins, baths, toilets, flushing cisterns and urinals, setting a lower minimum charge per kilogramme.

“5% of the excisable value or KSh. 30 per kg, whichever is higher.”

The changes could benefit hardware retailers, contractors, property developers and households building or renovating homes, although the actual savings will depend on the value, weight and area of imported products.

National Assembly Majority Leader Kimani Ichung’wah, who sponsored the legislation, said the previous weight-based system could impose a disproportionate burden on ceramic tile importers.

According to Parliament, a consignment containing approximately 25,000 kilogrammes of tiles could attract excise duty of about Sh1.25 million under the previous framework.

Ichung’wah estimated that the revised formula could reduce the tax burden on a typical consignment from between Sh1.2 million and Sh1.5 million to approximately Sh420,000 to Sh600,000.

Based on those estimates, the potential savings would range from Sh600,000 to Sh1.08 million per consignment.

The figures are illustrative, however, and will vary according to the shipment’s characteristics and the applicable tax calculation.

The change does not automatically guarantee lower prices in hardware shops, as the final cost of tiles also depends on international prices, freight charges, exchange rates, distribution expenses and retailers’ margins.

The revised formula also means that some products may continue to attract the percentage-based duty where it exceeds the minimum charge, making it important for traders to calculate the tax against individual consignments rather than assume a uniform reduction.

The law further reduces the specific excise duty on imported ceramic sanitary ware from Sh50 to Sh30 per kilogramme, a 40 per cent cut in the per-kilogramme rate.