By
Dennis Musau
Technology Correspondent
Nation Media Group
Mobile network operators are pushing for removal of taxes on entry-level smartphones, arguing that high handset costs have become the biggest obstacle to bringing millions of people online.
The push comes as Kenya has stepped back from plans that would have significantly lowered taxes on imported smartphones.
By
Dennis Musau
Technology Correspondent
Nation Media Group
Mobile network operators are pushing for removal of taxes on entry-level smartphones, arguing that high handset costs have become the biggest obstacle to bringing millions of people online.

The proposal was part of a plan to overhaul all taxes on imported phones.

Kenya's Finance Bill 2026 has proposed a series of tax changes that could raise the cost of locally assembled smartphones.

25 per cent excise tax will affect the overall cost of gadgets, financial transactions, and banking services.

The request comes amid the government’s decision to scrap the Tk 300 tax on mobile SIM cards

Mobile operators and the wider mobile ecosystem contributed about $810bn in tax revenues to governments globally in 2025.

Globally, regulators often tighten QoS enforcement after periods of rapid subscriber growth, smartphone adoption, mobile internet…