Ruto signs law cutting excise duty on tiles and sinks, keeps 8% fuel VAT

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Importers of tiles, ceramic sinks and float glass will pay less excise duty after President William Ruto signed the Tax Laws (Amendment) Bill, 2026, into law, a change the government says is meant to bring down the cost of building homes and public projects.

The President assented to the bill at State Lodge, Eldoret, on Friday, October 16, alongside the Kenya Revenue Authority (Amendment) Bill, 2026, which changes who sits on the taxman’s board, The Star reported. The same tax law keeps value added tax (VAT) on petroleum products at 8 per cent instead of the standard 16 per cent.

Tiles taxed by size, sinks by a lower rate

The biggest change for the building trade is how imported tiles are taxed. Excise duty on ceramic floor and wall tiles will now be charged by area rather than by weight, at KSh400 per square metre, Deputy Chief of Staff Josephat Nanok told the signing ceremony, according to People Daily.

Charging by size lines the tax up with how tiles are actually sold, by the square metre, and means heavy, thick tiles no longer attract more duty simply because of their weight.

Duty on imported ceramic sanitary ware falls from KSh50 to KSh30 per kilogramme, a 40 per cent cut. The category covers sinks, wash basins, baths, bidets, toilet pans, flushing cisterns and urinals.

The third change affects float glass, the flat sheet glass used in windows and doors. A provision in the Excise Duty Act had applied duty to glass from other East African Community (EAC) states, which a parliamentary brief said went against the regional customs protocol. The amended wording lets qualifying glass from EAC partners enter without that duty, Pulse Kenya reported.

“The idea, Your Excellency, is to allow float glass to be imported from the East African countries as if it were locally produced,” Nanok said.

Will building get cheaper?

The government has tied the cuts to its housing push, saying lower duty on finishing materials should help both State-backed affordable housing and private developers. Contractors and hardware dealers stand to gain first, since they buy the imported stock.

Whether homebuyers and people building their own houses see lower prices is less certain. Shop prices for tiles and fittings also depend on freight, the exchange rate, transport inland and dealers’ margins, so the duty cut may be absorbed along the chain rather than passed on in full.

Developers already pay the Affordable Housing Levy through payroll, so lower costs on materials would ease pressure on project budgets from another side.

Fuel VAT relief stays

For motorists and businesses, the main relief is on fuel. The 8 per cent VAT rate on petroleum products was first introduced in April 2026 to soften rising pump prices, and the new law keeps it in place. MPs had backed a 90-day extension earlier this week, a move expected to cost the Exchequer about KSh81bn in forgone revenue.

The bill, National Assembly Bill No. 65 of 2026, was sponsored by Majority Leader Kimani Ichung’wah. It was introduced on October 8 and passed with amendments on October 14.

KPA boss joins the KRA board

The second law reshapes the KRA board. The managing director of the Kenya Ports Authority (KPA) will now sit on it, a change meant to tie revenue collection more closely to port operations, where most customs duty is assessed.

The Attorney General, the Principal Secretary in charge of finance and the KRA Commissioner General will serve as substantive board members. The amendment to Sections 7 and 8 of the KRA Act drops references to “ex officio” members so that all members are treated the same way when they are appointed or removed.

For importers, closer working between KRA and KPA could speed up cargo clearance at Mombasa, though the benefit will depend on how the new board works in practice.