PG Bison Warns of Price Hikes as New 30% Wood Panel Tax Hits

Contractors and fit-out professionals relying on imported wood-based panels are facing a fresh cost shock, after Kenya's Finance Bill 2026 introduced a 30% excise duty on materials like MDF, particleboard, and plywood, effective July 1, 2026.

PG Bison Kenya confirmed the change in a letter to customers dated June 29, notifying them that the new excise duty applies on top of the existing 35% import duty already charged on these materials.

The combined tax burden lands directly on raw materials used throughout furniture manufacturing, joinery, and interior fit-out work, areas already squeezed by currency and shipping cost pressures.

A notice from PG Bison Kenya | PG Bison

PG Bison said it is "compelled to revise" its pricing in direct response, with a follow-up communication promised shortly to confirm specific price changes and effective dates.

For contractors with ongoing projects, the timing matters. Materials procured before July 1 won't carry the new tax, but anything sourced after will, creating a hard cost line that could affect tender pricing, bill of quantities accuracy, and contract variations on active sites.

Quantity surveyors and project managers working on interiors, joinery, or fit-out packages should expect material cost escalation clauses to come under pressure in the coming weeks, particularly on fixed-price contracts signed before the tax was announced.

PG Bison said it remains open to engaging with customers on how to manage the impact across project pipelines, and encouraged account holders to reach out directly for clarification.

The tax change adds to a string of recent cost pressures facing Kenya's construction supply chain, reinforcing the need for contractors to build greater contingency into material budgets going into the second half of 2026.