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Originally published by Techish Kenya
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May 26, 2026
1h ago

How Finance Bill 2026 could finally make smartphones cheaper in Kenya

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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