New Duty On Devices As Kenyans Are To Experience Higher Prices On Importing Phones

After a new duty was placed on the devices, Kenyans will begin importing mobile phones beginning tomorrow, Friday 30, at a higher cost.

On Tuesday, June 21, President Uhuru Kenyatta signed the tax into law, which is a part of the Finance Act 2022.

Mobile phone imports are now subject to a 10% levy that will be determined by the price of the devices ordered into the nation as well as additional fees.

“Excise duty on the importation of cellular phones shall be at 10 percent of excisable value,” read part of the Bill.

According to Nikhil Hira, a tax advisor with the business Kody Africa LLP, the government adopted the new legislation to serve as a means of raising money.

“I see it as a revenue-generating measure because of the number of people that want a mobile phone. It doesn’t make a lot of sense because we don’t have a local industry. I would understand if we had a mobile manufacturing industry because we would be trying to protect it,” he told Business Daily.

“The Treasury and MPs have realized that mobile phones are a lifeline for everybody and there are more and more of us that are buying phones and more will want to buy them in future.”

He argued that the end consumer will be the most affected as the local dealers will be forced to hike the prices to recoup their expenses.

“The price for the end consumer is going to go up not just by 10 percent but it will be more because there will be the VAT on that as well,” noted Hira.

At the moment, using phone and internet data services is subject to a 20% tax, which includes a 16% VAT.

M-Pesa and other money transfer services are subject to a 12 percent duty penalty.