By John Oyuke

Kenya Revenue Authority (KRA) has sounded the alert over the rising cases of illegally bottled water in the market.

The tax collector said anyone — whether a manufacturer or a consumer — found with unlicensed bottled water would suffer the consequences, which would include destruction of products at their cost.

KRA said it had noted with concern that most manufacturers have failed to comply with Section 90 (1) of Customs and Excise Act, CAP 472 of the Laws of Kenya, which outlaws manufacturing of bottled water without an excise license issued by the Commissioner of Domestic Taxes.

An offence
“Further, it is an offence under Section 185 (1) (d) (iii) of the Act to be in possession, purchase or consume water manufactured and sold by unlicensed water manufacturers,” KRA told all wholesalers, retailers and other outlets — including consumers in a terse public notice issued last week.

The Authority cautioned everyone that possession of unlicensed water also constitutes an offence under Section 191 (1) (c) of the Customs and Excise Act.
“In addition, any such water found in the market or stores shall be impounded and destroyed at the offenders’ cost, in accordance with Section 191 (3),” KRA said in the public notice dated May 10.
KRA also listed the licensed bottled water manufacturers.

The move comes as scarcity of potable and safe water has ballooned, leading to an exponential growth of the private water industry and creating overnight millionaires.

It also comes at a time when the taxman is moving to close all tax evasion loopholes as it seeks to meet its revenue targets and fish out landlords who have not been remitting rental income tax as required by the law.

For a long time, bottled water was seen as a product for the elite. But as the time went by, the industry began going downstream, packaging small quantities that even the not-so rich persons would afford.

Quality service
In fact, hotels and supermarkets have also begun branding their own bottled water products not just to compete with existing companies in the business, but also as one way of offering quality service to their clients.

It is estimated that the local bottled water business alone nets over Sh1.3 billion annually. And with the quest for a safer commodity, more and more investors are taking up the challenge in the multi-billion shillings industry to fill the gap occasioned by the massive growth.