How Finance Bill 2026 could finally make smartphones cheaper in Kenya
Finance Bill 2026 could make smartphones cheaper in Kenya by replacing multiple mobile phone taxes and import levies totalling 55.5% with a single, reduced 25% excise duty payable upon activation...
✨ Key Highlights
The Finance Bill 2026 proposes a significant overhaul of smartphone taxation in Kenya, potentially making devices cheaper for consumers.
- The current effective tax burden on imported mobile phones is approximately 55.5%, combining 16% VAT, 10% excise duty, 25% import duty, 2.5% import declaration fee, and 2% railway development levy.
- The proposed change, explained by Treasury CS John Mbadi, aims to collapse these multiple taxes into a single 25% excise duty collected upon phone activation.
- This shift could lead to increased liquidity for retailers and more competitive pricing, ultimately benefiting Kenya's digital economy.
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Part of the Day's Coverage
Kenya Seeks to Regulate Uber and Bolt Fares as Ruto Orders Minimum Pricing Framework - May 2026
Kenya is set to introduce minimum fare regulations for ride-hailing services like Uber and Bolt, following a directive from President William Ruto. In a separate development, a new academic corridor is set to be established between Kenya and Romania, aiming to provide Kenyan students with access to EU-accredited master’s degree programs. Meanwhile, the Finance Bill 2026 proposes a significant overhaul of smartphone taxation in Kenya, potentially making devices cheaper for consumers. These three stories represent key consumer-focused policy developments emerging from Kenya this week.
