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.

Parliament is concluding public participation hearings on Kenya's Finance Bill 2026 today, May 25, after stakeholders and the public submitted proposals on new tax measures for the 2026/27 fiscal framework.

• The Bill proposes amendments to several tax laws, aiming for tax administration reforms and revenue mobilization, including expanding the definition of "royalty" to cover digital services.
• Key proposals include a 25 percent excise duty on mobile phones, new levies on plastics and coal, and increased excise rates on tobacco.
• The National Assembly’s Departmental Committee on Finance and National Planning, chaired by Kuria Kimani, will review submissions before the Bill proceeds for debate and potential presidential assent.

Kenya is accelerating its transition to e-mobility in response to growing demand for electric vehicles and a nationwide matatu strike protesting high fuel prices.

• A nationwide matatu strike is currently underway across Kenya.
• The strike is led by matatu operators protesting escalating fuel costs.
• The government is actively pushing for an increase in the adoption of electric vehicles.

The Treasury Cabinet Secretary, John Mbadi, has clarified that several contentious proposals will not be included in the Finance Bill, 2026. This includes measures related to mobile money data access and motor vehicle tax.

• Key proposals excluded are VAT for bread, motor vehicle circulation tax, and access to mobile money transaction data.
• The announcement was made by Treasury Cabinet Secretary John Mbadi.
• The exclusion pertains to the Finance Bill, 2026, aiming to remove these specific tax and data access measures from consideration.

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.

Treasury Cabinet Secretary John Mbadi has unveiled the Finance Bill, 2026, emphasizing its commitment to fairness, equity, and simplicity in the tax system. He asserted that all Kenyans earning income are expected to contribute their rightful share.

• The bill aims to promote fairness, equity, and simplicity in taxation.
• The key figure is Treasury Cabinet Secretary John Mbadi.
• The core principle is that every Kenyan earning income should pay their fair share of tax.