Kenya: KRA Takes Up Frequent Rollout of Excise Stamps to Curb Illicit Trade

Nairobi — The Kenya Revenue Authority has embarked on a frequent rollout of new generation excise stamps in a bid to reduce illicit trade in the country.

The taxman has completed the rolling out of the latest version of excise stamps (version four), which was implemented in three phases.

The first phase was rolled out on alcohol products in early December, followed by the second phase on soft drinks and water towards the end of December.

The last phase was tobacco and Keg beer products, which was done in February this year.

Speaking during a media sensitization workshop on the rollout of the new generation stamps, Project Manager of the Excisable Goods Management System, Linstrom Kinoti said KRA is banking on regular upgrades of the stamps to ensure they are up to date with security features to reduce counterfeit.

“We are also educating consumers, wholesalers and vendors on how to verify products by themselves using the mobile app known as Soma label,” said Kinoti.

The new generation is expected to boost revenues while protecting legit industries from counterfeits.

The Excisable Goods Management System(EGMS) was first introduced on alcoholic drinks and cigarettes in 2013. The system has helped increase excise tax from Sh700 million to Sh5.6 billion annually.

Last year, there were concerns the Kenyan retail market was flooded with fake excise stamps, which was fuelling growth of illicit trade, mainly on excisable goods.

According to the Anti-Counterfeits Authority(ACA), Kenya loses more than Sh153 billion tax revenue annually to illicit trade.

ACA also notes that Kenya has one of the largest markets for fake goods and contraband in East Africa, ranging from alcohol, electronics and pharmaceuticals to food, clothing and tobacco.