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Originally published by Capital Business
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business
May 11, 2026
2h ago

Smartphones may become luxury items under new Finance Bill tax

Smartphones may become luxury items under new Finance Bill tax

The proposal, contained in amendments to the Excise Duty Act, seeks to impose the levy on telephones for cellular networks or for other wireless networks,with the tax payable at the point of activation rather than importation or purchase. Kenya breaking news | Kenya news today |..

✨ Key Highlights

A proposed 25% excise duty on mobile phones in Kenya's Finance Bill, 2026 could make smartphones unaffordable for low-income households, potentially widening the digital divide.

  • A Sh10,000 smartphone could increase to over Sh12,500.
  • The Kenyan Treasury aims to raise an additional Sh120 billion in new tax measures.
  • Critics argue this contradicts the government's digital transformation agenda and its support for the "hustler economy."

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