The Kenya Association of Manufacturers (KAM) is warning that proposed tax changes in the Finance Bill 2026 could significantly increase the cost of essential products like electric motorcycles and mobile phones.

• KAM states that shifting key products from VAT zero-rated to VAT-exempt status would prevent local manufacturers from recovering input taxes, leading to higher consumer prices.
• The affected products include electric motorcycles, mobile phones, animal feed inputs, solar equipment, lithium-ion batteries, and bioethanol vapor stoves.
• KAM urges lawmakers to maintain the zero-rated status to support affordable clean energy technologies, local production, and Kenya's transition to a greener future.