Kenyan President William Ruto has outlined four measures aimed at cutting household costs and widening access to the country’s digital economy, including a plan to remove the 25% tax on imported mobile phones.
Kenya plans 25% mobile phone import tax cut
The move matters because mobile handsets are a gateway to spending, banking, education and work in Kenya, where mobile payments are central to financial inclusion. Scrapping the levy could lower the upfront cost of devices and pull more consumers into the digital economy, although the final price impact will depend on how importers and retailers pass through the tax cut.
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Ruto said the government will begin the legal, customs and regulatory steps needed to implement the change. The proposal follows a tax regime introduced in 2026 that imposed the 25% charge on mobile phones, and it reflects a broader push to ease pressure on consumers after months of concern over the cost of living, taxation and unemployment.
The handset tax cut is only one piece of the package. Ruto also proposed exempting workers earning up to 32,333 Kenyan shillings a month from pay-as-you-earn income tax, removing stamp duty on some land transactions worth up to 1 million shillings and adding 50,000 young people to the national internship program from January 2027.
For investors, the plan points to a more consumer-friendly fiscal stance in a country where household demand remains sensitive to taxes and inflation. It could support telecoms, device distributors and mobile-money usage over time, while also putting pressure on government revenue collection if the measures are enacted in full.
The proposals still need legislative and administrative approval, and their eventual impact will depend on how quickly they are implemented and whether businesses translate tax relief into lower prices. Kenya’s broader policy direction will stay in focus as the government tries to balance growth support, youth employment and fiscal discipline ahead of the next election cycle.
| Entity | Gains | Losses |
|---|---|---|
| Kenyan households | ▲Lower device and tax costs | ▼Less immediate fiscal room |
| Telecoms and handset sellers | ▲Higher device adoption | ▼Margin pressure if cuts passed through |
| Young job seekers | ▲More internships | ▼Delayed benefits if rollout stalls |
| Treasury/government revenue | ▲Policy gains with voters | ▼Tax receipts from imports and salaries |
