Kenya's Treasury Cabinet Secretary John Mbadi clarified that a proposed 25% excise duty on mobile phones is intended to simplify existing taxes, not introduce a new burden.

• The proposal aims to consolidate multiple existing charges, totaling an estimated 55.5%, into a single 25% excise duty collected at activation.
• Key individuals/organizations involved include John Mbadi and the Kenyan Treasury.
• The reform, part of the Finance Bill 2026 undergoing public participation, seeks to replace VAT, import duty, and other levies with the consolidated excise duty.

The Kenya Association of Manufacturers (KAM) has warned that the proposed Finance Bill 2026 could significantly increase production costs for the industrial sector by altering tax and levy structures.

• Proposed changes include shifting key industrial inputs from zero-rated to exempt VAT status, preventing manufacturers from reclaiming input VAT.
• The KAM, representing a sector that contributes 7.1% of GDP, argues these measures will increase manufacturing costs, potentially leading to higher consumer prices.
• The lobby group is calling for a review of the proposals, urging the retention of zero-rating for critical inputs and reconsideration of measures that could destabilize industrial growth.