While historically restricted to physical luxury goods, excise duty has expanded into the service and digital sectors to capture revenue from fast-growing, high-volume transactions.

Excise tax is levied on airtime, data bundles, and internet connectivity. The tax is calculated on the gross amount charged to the consumer by the service provider, excluding VAT.

Fees charged by commercial banks, microfinance institutions, and mobile money operators (like M-Pesa or Airtel Money) for money transfers, withdrawals, and account maintenance are subject to excise duty.

Excise duty is charged on the amount wagered or staked by punters in bookmaking, lotteries, and online gaming platforms. This serves both as a lucrative revenue line and a corrective social policy tool to curb problem gambling.