KRA chair defends plan to tax phones at 25% when they join a network
KRA Board Chairperson Ndiritu Muriithi has defended a 25% excise duty on phones, charged when they first connect to a Kenyan network. Parliament dropped the idea from the Finance Act 2026, so the current 10% duty still applies.
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…
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