Mombasa Residents Reject Proposed Phone Activation Tax

By Mbungu Harrison

Email, thecoastnewspaper@gmail.com

Mombasa residents have urged Parliament to drop a proposed excise duty on mobile phones charged upon activation saying it would cripple small businesses that rely on phones for income.

During the final day of public participation on the Finance Bill at Tononoka Social Hall on Monday, June 8, 2026, Jeremia Simiyu, representing Bunge la Mwananchi from Changamwe, told MPs that Kenyans were already overburdened by taxes on phones.

“Mobile phones attract 16% VAT, 10% excise duty, 25% import duty and 2.5% import declaration fee. Additional tax on activation will kill businesses and make it harder for young people looking for jobs,” he said.

National Assembly Finance Committee chairman Kimani Kuria, who led the parliamentary team, assured residents their views would be considered before the Bill was passed.

“We have heard you. You do not want tax on activation of mobile phones and we will factor your proposals. We are going to Nairobi to look at the submissions and make amendments before passing,” the chair said.

He dismissed claims that the government planned to introduce tax on food products.

“There is no proposal to tax food,” he said.

The chair defended President William Ruto’s frequent foreign trips arguing they were aimed at securing trade treaties.

He cited recent visits to South Africa and Asia as examples of engagements that were boosting Kenya’s economy.

The committee was expected to table its report in Parliament next week.

He said all views raised by Kenyans during the public hearings would be factored in with emphasis on proposals touching on pensions.

The government has been under pressure to raise more revenue, but the phone tax proposal has sparked strong resistance from citizens who argue that mobile phones are now basic tools for work, learning and communication.

Members of the National Assembly Committee on Finance and National Planning had convened in Mombasa County to engage residents on the proposed Finance Bill, 2026, Sovereign Wealth Fund Bill, Kenya Revenue Authority (Amendment) Bill, and Central Bank of Kenya (Amendment) Bill.