The Kenyan government has proposed new tax measures on second-hand clothing and mobile phones as part of the Finance Bill 2026. Treasury Cabinet Secretary John Mbadi tabled the bill in Parliament at the end of April.
The bill inserts a new section into the Income Tax Act after section 12G covering tax on income from importation of worn clothing and other worn articles. Taxable profit is deemed to be five per cent of the customs value of the imported goods.
Mitumba imports already attract 16 per cent VAT at entry. Traders will now also pay 30 per cent income tax on the assumed five per cent profit margin. This replaces multiple overlapping tax processes previously applied at different stages.
For mobile phones and wireless communication devices the bill proposes a 25 per cent excise duty. The tax will be charged by the Kenya Revenue Authority when a phone is activated rather than at import or purchase.
