Kenya Revenue Authority Board Chairperson Ndiritu Muriithi defended a proposed 25 per cent excise on mobile phones, arguing that large importers exploit consolidated cargo arrangements to avoid duties.
Speaking at a media engagement in Laikipia on Saturday, October 31, he held a handset to illustrate possible revenue, noting that a single phone could generate KSh20,000 in duty and a container of 100,000 phones could represent KSh2 billion.
Muriithi warned that some traders hide behind small-scale importers who share shipping containers, disadvantaging legitimate businesses, and said “Those cartels came and ruined something that was developed by previous governments to protect the small traders.”
His comments coincided with KRA’s public notice dated October 27, which obliges consolidators, customs agents and importers to submit individual importer details – name, KRA PIN, ID number, contact, description and declared value – for goods in shared consignments, a step aimed at greater transparency and the use of the electronic Tax Invoice Management System (eTIMS) for electronic invoicing.
A recent enforcement case at Eldoret International Airport uncovered a shipment declared as 3,000 basic smartphones but actually containing 55,607 basic units and 309 high-end phones, resulting in an additional KSh56 million tax liability and a recommendation for prosecution or an administrative settlement.
The 25 per cent activation-based excise was originally included in the Finance Bill 2026 but was rejected by the National Assembly’s Departmental Committee on Finance and National Planning and omitted from the Finance Act 2026, leaving the existing 10 per cent excise unchanged.
President William Ruto, addressing the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret on October 20, announced plans to remove the separate 25 per cent import duty introduced on July 1, 2026 under the East African Community’s Common External Tariff, a measure distinct from the activation-based proposal defended by Muriithi.
Kenya recorded 52.26 million connected smartphones and 27.42 million feature phones at the end of June 2026, highlighting the fiscal importance of handset pricing for retailers and consumers.
M-KOPA reported reaching 10 million customers across Africa in October 2026, underscoring the demand for affordable smartphones in the country’s digital economy.
