“Mbadi Defends New Phone Tax Plan as Government Slashes Charges From 55% to 25%”
By Jeff Kizzilah/Digital Editor
Treasury Cabinet Secretary John Mbadi has taken the Finance Bill 2026 public participation exercise to Nairobi’s Central Business District, engaging phone and electronics traders on the government’s proposed reforms targeting mobile phone taxation.
During the consultative meeting with traders, Mbadi explained that the proposed Finance Bill seeks to simplify and reduce taxes imposed on mobile phones by introducing a single 25 percent excise duty.
The CS said the reforms are aimed at easing the burden on traders and lowering the overall cost of mobile phones for consumers across the country.
Mbadi further clarified that traders will only be required to remit the new tax after a phone has been sold, a move expected to improve cash flow and support small businesses operating in the electronics sector.
According to the Treasury CS, phone dealers currently face taxes amounting to nearly 55 percent of the original cost of a mobile phone before it reaches the market.
He noted that the existing tax structure includes Value Added Tax (VAT), import duty, excise duty, Import Declaration Fee (IDF), and the Railway Development Levy (RDL), which the government now plans to eliminate under the new proposal.
Mbadi maintained that the changes are intended to support digital access, boost business growth, and make smartphones more affordable to Kenyans as the country accelerates its digital transformation agenda.
The Finance Bill 2026 continues to undergo public participation across the country before being presented to Parliament for debate and approval.
