KAM warns VAT changes could raise prices of e-motorcycles, phones
KAM said the proposal to shift several products from VAT zero-rated status to VAT-exempt status would make it difficult for manufacturers to recover input taxes, ultimately pushing up consumer prices. The affected products include electric motorcycles, mobile phones, animal feed ..
✨ Key Highlights
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.
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Deadlock in Revenue Talks as MPs Offer Counties Sh425bn - June 2026
Mediation talks between Kenya's National Assembly and the Senate over county revenue allocation have hit a deadlock, with the two Houses far apart on the proposed amounts. The Senate and National Assembly are nearing a deal on counties' revenue sharing, with key negotiations centering on a provision to protect devolved units from sudden funding cuts. In related developments, Kilifi residents have voiced strong opposition to several tax proposals within the Finance Bill 2026, particularly those impacting digital services and mobile devices, during public participation hearings. Meanwhile, the Kenya Association of Manufacturers 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.
