National Treasury Cabinet Secretary John Mbadi has condemned domestic taxes and levies on mobile phones, saying the Finance Bill 2026 does not levy a new tax on mobile phones as critics have alleged.

Speaking during a press conference on Monday, May 25, 2026, Mbadi said the debate around the proposal had been hijacked by accusations that it was targeting young people, digital access and online livelihoods.

“Public discussion has particularly focused on the proposed 25 per cent exercise duty on mobile phones, with some commentary framing the proposal as targeting the youth and online digital access and online livelihoods. The national treasury wishes to clarify that the proposal does not introduce a new tax on mobile phones. Mobile phones are currently subject to multiple levies and domestic taxes during their importation and along the supply chain,” Mbadi said.

The CS added that there are several taxes and levies already imposed on mobile phones before they reach the local market.

“There is a 16% VAT, a 10% excise duty, a 25% import duty, a 2.5% import declaration fee, and a 2% railway development levy,” Mbadi added.

Uproar over Finance Bill 2026

The Treasury’s response coincides with the Finance Bill 2026, generating a strong response from the Kenyan population, particularly the youths and digital content creators, whose smartphones they are already struggling to afford due to higher taxes.

Mobile phones, especially for young people who work on online platforms to earn income, have become indispensable communication and education tools, and for e-commerce and digital jobs, argue critics. They argue that raising charges on the devices will kill the emerging digital economy in Kenya and exclude the poor from access to the internet.

The Treasury, however, contends that the proposed tax measures are part of larger steps it is taking to increase the revenue of the government and simplify the taxes on imports. The officials say that the levy is not peculiar and should be compared with the taxes levied on other goods that have been imported into the Kenyan market.

The debate is likely to be heated as Parliament returns for sittings to debate the Finance Bill 2026 before it takes a vote on whether to approve it for presentation to President William Ruto for assent.