Kenya Revenue Authority (KRA) Board Chairperson Ndiritu Muriithi has revived the idea of taxing phones when they first connect to a Kenyan network. He made the case at a media engagement in Laikipia, according to Techweez and Tuko. Muriithi argued that under-declaration and the misuse of consolidated cargo are beating checks at the point of import.
The 25% tax is not in force. It appeared in the Finance Bill 2026. Parliament's Finance and National Planning Committee recommended removing it, and it was left out of the Finance Act 2026. The existing 10% excise duty on mobile phones remains unchanged.
Excise duty is currently paid when a phone is imported or made locally. Under the proposal, importers and licensed manufacturers would owe the 25% duty when a device is activated on a Kenyan network. KRA could then use network records to match devices against import declarations and tax payments. Techweez reports that the Treasury said honest importers would benefit from paying later. Unsold stock would no longer tie up their cash.
KRA's concerns rest on real cases. Business Daily reported in September that KRA investigators found 55,607 basic smartphones in a shipment where only 3,000 had been declared. They also found 309 undeclared high-end phones and an alleged KES 56 million in under-declared taxes. Muriithi said some importers use consolidated cargo, where several traders share shipping costs, to hide high-value phones.
The Bill never clearly defined "activation". Techweez notes that it could mean switching on a phone, inserting a SIM card or first connecting to a local network. The committee flagged this gap. Businesses would be the legal taxpayers, but Techweez says most would likely pass the cost on to buyers. It adds that second-hand buyers and lower-income households face the biggest risk.
An activation system would likely need device identifiers such as IMEI numbers. That raises privacy questions. In 2025, the High Court quashed KRA and Communications Authority directives requiring mandatory IMEI disclosure, citing privacy and legal safeguards.
KRA has already acted on consolidated cargo. A notice issued in October 2026 requires importers, customs agents and consolidators to disclose each importer's details and the value of their goods. Techweez points out that KRA has not yet published the size of the revenue gap from phones.