EGM Stamps Deadline Leaves Traders in a Rush

As the February 29th deadline for unstamped products (EGM) approaches, traders dealing in bottled water, juices and energy drinks are in a rush to clear their remaining stock.

Non- alcoholic drinks, including juice, soda and water, which were manufactured or imported to Kenya into the country before 13th November 2019, are mandated by the KRA’S Excisable Goods Management Systems (EGMS) to be fitted with an excise duty stamp.

Postponement of the deadline to 31st May 2020, is however still being pushed by Kenya Association of Manufacturers (KAM) to enable the traders to clear stocks manufactured or imported into the country before 13th November 2019.

KAM CEO, Phyllis Wakiaga was quoted by The Star, “Given that there is already existing stock in their warehouses and in the supply chain, and the poor performance of the economy affecting consumer demand, the period provided by KRA is not sufficient,”

The Water Bottlers Association of Kenya (WBAK), last month, announced an increase in price of bottled water, also as a result of the EGM stamps.

The EGMS stamps seek to enhance compliance and boost revenue collection by approximately KSh4 billion this, according to the Kenya Revenue Authority (KRA).