Kenya Treasury Proposes Single 25% Excise Duty on Mobile Phones

Treasury Cabinet Secretary John Mbadi stated on May 25 that the government has not introduced any new taxes on mobile phones. He said the proposal would simplify the current tax regime rather than create an additional levy. Mobile phones are already subject to several charges, including 16% VAT, 10% excise duty, 25% import duty, a 2.5% import declaration fee, and a 2% railway development levy.

These charges together reach an estimated 55.5% tax burden.

Under the plan, the separate charges would be removed and replaced by a single 25% excise duty collected at the point of activation. Officials said the change would eliminate the requirement for traders to pay taxes before sales occur. Mbadi said the measure is intended to improve efficiency and transparency in taxation.

He stated that the proposal does not introduce a new tax on mobile phones and was conceived as a simplification measure. The Finance Bill 2026 continues to undergo public participation in Parliament. Officials said critics have misreported the proposal as a tax increase rather than a restructuring of existing charges.