Treasury Cabinet Secretary John Mbadi has called on bottled water manufacturers, distributors and retailers to reduce prices following the removal of excise duty on the product.

Speaking in an interview with a local TV station on Wednesday, July 1, 2026, Mbadi said the government scrapped the excise duty of Ksh6 per litre on bottled water, a move aimed at lowering the cost to consumers.

“The bottled water has been attracting excise duty. We removed that at a rate of six shillings per litre. That has now been removed, so bottled water should be cheaper from today,” Mbadi said.

The CS has urged traders across the supply chain to pass on the tax savings instead of retaining the benefits, insisting that consumers should be the ultimate beneficiaries of the government’s decision.

“I call upon those who are trading in bottled water to pass the benefit to the consumers,” he added.

Mbadi refutes claims of new taxes on bottled water

Mbadi has also dismissed claims that the government had introduced new taxes on bottled water, saying the changes had been misrepresented through misinformation and propaganda.

“That again was being misinterpreted, with propaganda suggesting that we were adding taxes on bottled water, yet we were doing the opposite,” he said.

The CS said the tax relief is part of broader reforms intended to ease the cost of living by eliminating taxes on selected goods while ensuring that businesses transfer the benefits of lower taxation to consumers through reduced prices.

The statement from Mbadi comes as the government continues to explain the tax relief measures that took effect under the Finance Act, 2026, which came into force on July 1.

The reforms come against a backlash on the rising cost of living and the tax burden on households and businesses.

The government has insisted that it has taken measures to improve tax administration through tax exemptions, simplified filing procedures, and the removal of selected levies on essential goods.