Ruto Moves to Scrap 25% Phone Import Tax in Major Relief for Kenyans

President William Ruto has announced plans to scrap the 25 per cent import duty imposed on mobile phones, a move that could significantly reshape the cost of smartphones and expand access to digital services across Kenya.

Speaking during the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret on Tuesday, October 20, 2026, Ruto said the government would pursue the necessary legal and regional customs procedures to remove the duty.

The 25 per cent import duty came into effect on July 1, 2026, following changes to the East African Community Common External Tariff.

Kenya moved from a zero per cent duty rate to 25 per cent for imported mobile phones, a change that raised concerns among consumers, traders and young people who depend heavily on smartphones for work and business.

Ruto argued that smartphones should no longer be treated as luxury products.

He described mobile phones as essential tools that serve as classrooms, marketplaces, banks and offices, particularly for young Kenyans seeking opportunities in the digital economy.

The proposed removal could offer relief to consumers who have faced increasingly high costs when purchasing smartphones.

Mobile phones have been subjected to several taxes and levies, including import duty, excise duty, VAT, import declaration fees and the Railway Development Levy.

Treasury has previously estimated the combined tax burden under the existing framework at about 55.5 per cent.

However, the proposed change will not take effect immediately.

The President said the government must first undertake the required legal and customs processes, meaning Parliament and relevant regional mechanisms will have a role to play before the new arrangement can be implemented.

No specific implementation date was announced.

The announcement comes amid wider government proposals aimed at easing the financial pressure on Kenyans.

Ruto also proposed exempting workers earning Ksh32,333 or less per month from PAYE, removing stamp duty on qualifying land transactions worth Ksh1 million or less, and expanding the national internship programme to accommodate 50,000 additional graduates from January 2027.

For consumers, the proposed phone-duty removal could be particularly significant as smartphones increasingly determine access to education, mobile banking, e-commerce and employment.

If implemented fully, the measure could make digital connectivity more affordable and bring more Kenyans into the country’s growing digital economy.

https://peopledaily.digital/news/ruto-announces-plan-to-scrap-25-mobile-phone-import-duty?fbclid=IwY2xjawVEOBRleHRuA2FlbQIxMQBwZG9mAXNydGMGYXBwX2lkDDM1MDY4NTUzMTcyOAABHkUnCPNq8TouzY5GcH6RdsVg7AN13GBOs3ecCcA-Gh3A5O9Qb124nm-fRup5_aem_rXZELhZMGraHm8SLnnhgVg

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