- President William Ruto announced plans to eliminate the 25% excise duty on mobile phones during Mashujaa Day celebrations in Eldoret
- Ruto framed the proposal as one of four measures aimed at reducing the cost of living and expanding digital access for young Kenyans
- The announcement forms part of the Kenya Kwanza administration's broader economic pitch ahead of the 2027 General Election
TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting, offering insights into Kenyan and global economic trends.
President William Ruto has called for the removal of a 25% import tax on mobile phones, arguing that cheaper handsets will widen access to the digital economy and create new openings for young Kenyans.
Source: Facebook
Ruto delivered the announcement on Tuesday at the 63rd Mashujaa Day celebrations held at Kipchoge Keino Stadium in Eldoret, Uasin Gishu county on Monday, October 20.
The event was co-hosted by Uasin Gishu, Nandi and Elgeyo-Marakwet counties under the theme of security, sports and economy, marking a national occasion that honours Kenyans whose sacrifice advanced the country's independence and development.
Why did Ruto announce plans to scrap mobile import tax?
The president described mobile phones as central to modern economic life, well beyond their original function as communication devices.
"We will pursue the necessary legal and regional customs processes so that we remove the 25% import duty on mobile phones. 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 proposal is among four measures the president outlined as intended to put more money in Kenyans' pockets, ease property ownership and stimulate job creation for youth.
Ruto's broader economic defence
The Mashujaa Day address also served as a platform for Ruto to respond to widespread public discontent over the cost of living, taxation and unemployment.
He acknowledged that young Kenyans had taken to the streets to voice their frustrations and positioned the proposed tax changes as a direct response to those concerns.
Ruto said any amendments to the tax structure would follow the required parliamentary and fiscal processes, with the government committing to transparent and sustainable implementation.
The speech formed part of a broader effort by the Kenya Kwanza administration to present its economic record ahead of the 2027 General Election. Ruto urged that the election be decided on the basis of development, policy delivery and results rather than ethnic considerations.
Which act consolidates mobile phone taxes?
The Finance Act 2026 had consolidated various charges on handsets into a single 25% excise duty applied at the point of activation.
Before that framework, mobile phones were subject to multiple overlapping levies, including VAT, excise duty, import duty, import declaration fees and a railway development levy, which together amounted to roughly 55.5%.
Ruto said scrapping the consolidated tax entirely would make devices more affordable and help the government achieve its target of two million digital employment opportunities over the next three years.
Source: TUKO.co.ke