In Kenya today, a smartphone is a tool for survival. Young people use phones for learning, running small businesses, freelancing, mobile money, and staying connected. But a proposal in the Finance Bill 2026 has created big worry: a 25% excise duty on mobile phones.

Many fear this “Smartphone Tax” will make phones too expensive for students, hustlers, and low-income youth. Critics are calling it a trap that could silence Kenya’s digital generation.

Why Are Young People Worried?

  1. Higher prices: For a phone selling at KSh 10,000, the new 25% duty adds KSh 2,500. A KSh 15,000 phone would cost an extra KSh 3,750. This makes it harder for many to buy or upgrade their phones.
  2. Impact on digital youth: Millions of young Kenyans depend on cheap smartphones for TikTok content creation, online learning, M-Pesa businesses, and job searching. Higher costs could reduce digital access.
  3. Memories of past protests: After the 2024 Finance Bill, many young people are quick to reject any tax that touches their daily tools.
  4. Trending anger on X: Hashtags like #RejectFinanceBill show strong feelings, with users saying the tax will push Kenya backwards in technology.

What Does the Government Say?

Treasury Cabinet Secretary John Mbadi has strongly defended the proposal:

  1. It is not a new tax.
  2. Currently, phones attract many different charges (import duty 25%, VAT 16%, excise 10%, plus other fees) — adding up to about 55% total tax burden.
  3. The Bill wants to replace all these with one single 25% excise duty, charged only when the phone is activated on a network.
  4. The government says this will make the system simpler, more transparent, and could actually reduce the overall cost in the long run.

They argue the change improves tax collection without adding extra burden.

The Real Concerns

Even with government clarifications, worries remain:

  1. Many ordinary Kenyans do not believe the price will stay the same.
  2. The duty applies to both imported and locally assembled phones.
  3. In a country where the cost of living is already high, any extra cost on phones affects education, small businesses, and innovation.
  4. Experts warn that reduced smartphone ownership could slow Kenya’s digital economy growth.

What Should Be Done?

As public participation on the Bill continues, many are calling for:

  1. Complete removal or reduction of the 25% duty.
  2. Clear protection for cheap smartphones used by students and low-income users.
  3. More dialogue with youth, content creators, and small businesses.

Bottom Line

The 25% excise duty on phones in the Finance Bill 2026 is presented as tax simplification by the government. However, for Kenya’s young people who rely on affordable smartphones to hustle and learn, it feels like a direct attack on their future. Parliament must listen carefully to these fears before passing the Bill. In the digital age, taxing phones too heavily could silence the very voices that power Kenya’s tomorrow.