By Jeff Kizzilah/Digital Editor
Treasury Cabinet Secretary John Mbadi has taken the public participation exercise on the Finance Bill 2026 directly to traders in Nairobi’s Central Business District, engaging mobile phone and electronics dealers on the proposed taxation reforms targeting the sector.
Speaking during consultations with traders, Mbadi defended the government’s proposal to streamline taxes on mobile phones, saying the new Bill seeks to reduce the heavy tax burden currently affecting the electronics business and consumers across the country.
According to the CS, the Finance Bill 2026 proposes that mobile phones will only attract a single tax — a 25 percent excise duty — replacing the multiple charges currently imposed on traders and importers.
Mbadi explained that under the proposed system, traders will only be required to remit the new tax after the phone has been sold, a move aimed at easing pressure on businesses and improving cash flow for small and medium enterprises operating in the electronics sector.The Treasury CS further revealed that mobile phone traders are currently subjected to taxes amounting to nearly 55 percent of the original cost of a phone before it reaches the consumer.
He noted that the existing charges include Value Added Tax (VAT), import duty, excise duty, Import Declaration Fee (IDF), and the Railway Development Levy (RDL), which the government now intends to scrap under the proposed Finance Bill reforms.
Mbadi maintained that the changes are intended to make mobile phones more affordable to Kenyans, support digital connectivity, and create a more favorable environment for businesses operating in the ICT and electronics industry.
The public participation exercise continues across the country as the government seeks views from Kenyans before the Finance Bill 2026 is tabled for further consideration in Parliament.
