Ruto announces plans to scrap 25% import duty on mobile phones to boost digital economy

President William Ruto has announced major plans by his administration to remove the 25% import duty currently levied on mobile phones.

The move is aimed at making smartphones significantly more affordable for all citizens and expanding digital inclusion across the country.

The Head of State made the announcement while addressing the nation during the 63rd Mashujaa Day celebrations held at the Kipchoge Keino Stadium in Uasin Gishu County.

Emphasizing the evolving role of technology in everyday life, President Ruto asserted that smartphones have transitioned from being luxury goods to fundamental necessities.

“As you all know, a mobile phone is no longer a luxury. It is a classroom, a marketplace, a bank and an office for many young Kenyans and a gateway to employment,” President Ruto stated.

The 25% import duty on mobile phones was originally introduced following the revision of the East African Community’s (EAC) Common External Tariff, taking effect on July 1, 2026.

While the tax was meant to support regional frameworks, its implementation substantially increased the financial burden on importers and retail buyers alike.

Under the existing tax structure, imported mobile phones face a cumulative stack of levies. Alongside the 25 per cent import duty, devices are subjected to a 10 per cent excise duty, a 16 per cent Value Added Tax (VAT), and a 2 per cent Railway Development Levy (RDL).

Previous estimates from the National Treasury indicated that these combined charges pushed total taxes on imported phones to approximately 55.5 per cent, keeping smartphones out of reach for many low-income households.

By removing the import duty, the government hopes to ease this heavy tax burden, lower retail prices, and ensure that a larger segment of the population can participate in and benefit from the digital economy.

While the announcement has brought widespread relief to tech consumers, traders, and young entrepreneurs, the President noted that executing the plan requires formal administrative changes.

“We will pursue the necessary legal and customs processes so that we remove the 25 per cent import duty on mobile phones,” Ruto stated.

In line with this commitment, the President directed the National Treasury to draft the formal proposals and present them to Parliament.

Although a precise implementation timeline has not yet been finalized, the directive to involve Parliament immediately signals the administration's intent to fast-track the legislative and customs amendments required to operationalize the tax exemption.

As the proposal moves to Parliament in the coming weeks, stakeholders across the telecommunications and retail sectors await further details on how the transition will be managed, with hopes that lower device costs will unlock new economic opportunities nationwide.