President William Ruto has proposed scrapping the 25 per cent import tax on mobile phones in a move he says will lower the cost of accessing digital services and expand economic opportunities particularly for young people.
Ruto made the announcement on Tuesday during the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret, Uasin Gishu county, where he delivered his national address.
The event, hosted by Uasin Gishu, Nandi and Elgeyo-Marakwet counties under the theme Security, Sports and Economy, honoured Kenyans whose courage and sacrifice secured the country’s independence and those continuing to contribute to its development.
The President said the proposed tax change was among four measures intended to put more money in Kenyans’ pockets, ease property ownership, widen access to the digital economy and create employment opportunities for young people.
“Mobile phones are no longer a luxury. They are a classroom, a marketplace, a bank, an office and, for many young Kenyans, a gateway to employment,” Ruto said.
The Finance Bill 2026 consolidated multiple charges into a single 25 per cent excise duty to be applied at the point of activation of mobile phones.
The previous taxation framework attracted multiple levies, including VAT, excise duty, import duty, import declaration fees and railway development levy, which cumulatively amounted to about 55.5 per cent.
Ruto said completely scrapping the tax would make digital opportunities accessible to more people, as the government seeks to expand digital employment to two million opportunities over the next three years.
The proposal comes amid public concerns over the cost of living, taxation and unemployment, which Ruto acknowledged in his address, noting that young people had taken to the streets to express their frustrations.
The President said the proposed tax changes would undergo the necessary parliamentary and fiscal processes, with the government promising transparent and sustainable implementation.
The announcement was part of his broader defence of the Kenya Kwanza’s economic record ahead of the 2027 General Election, which he said should be contested on the basis of development, policies and results rather than ethnicity.
The celebrations honoured the sacrifices of Kenya’s freedom fighters and called on the current generation to advance their legacy by expanding opportunity, protecting constitutional freedoms and improving the lives of citizens.
