President William Ruto has proposed doing away with the 25 per cent tax on mobile phone imports, saying the move will bring down the cost of getting online and open more doors for young people looking for work. He made the announcement on Tuesday at the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret, Uasin Gishu County, where he also gave his national address.
The event was hosted by Uasin Gishu, Nandi and Elgeyo-Marakwet counties under the theme "Security, Sports and Economy." It was a day to remember the heroes who fought for Kenya's independence and to thank the people still working hard to build the country today.
According to the President, the phone tax is one of four measures the government wants to roll out to put more money in the pockets of ordinary Kenyans. The others are meant to make it easier to own property, widen access to the digital economy and create more jobs for the youth. Ruto was clear that a phone is no longer a luxury item. For many students, traders and job seekers, it is the classroom, the market, the bank and the office all in one, and it is often the first step towards getting a job.
Those who have been following the Finance Bill 2026 will know that the phone charges used to be a headache. The old system had several taxes stacked on top of each other, including VAT, excise duty, import duty, import declaration fees and the railway development levy. Together, they added up to around 55.5 per cent. The new Bill combines these into one 25 per cent excise duty, charged when the phone is activated. Ruto says scrapping that tax completely would make it cheaper for more Kenyans to get online, especially as the government works to create two million digital jobs over the next three years.
The announcement comes at a time when many Kenyans are feeling the pinch. Cost of living, taxes and unemployment remain big worries for families across the country. Ruto admitted this in his speech and noted that young people have taken to the streets to show their frustration. He said any changes to taxes will still have to go through Parliament and the normal budget processes, and promised that the government will implement them in a clear and sustainable way.
Politics was also part of the conversation. The President used the platform to defend the Kenya Kwanza government's economic record ahead of the 2027 General Election. He said Kenyans should judge leaders on development, policies and results, not on their ethnic backgrounds. Whether the phone tax plan will win over those who are still struggling remains to be seen, but for now, many young Kenyans will be watching closely to see if the promise becomes reality.
0 Comments