Finance bill 2026 proposes new taxes on mitumba and mobile phones

May 07, 2026

由 AI 报道

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.

KRA proposes removing VAT registration threshold for all businesses

The Kenya Revenue Authority (KRA) plans major changes to the Value Added Tax Act by scrapping the KSh5 million annual turnover threshold for VAT registration. This would require all businesses, including micro-enterprises, to charge 16% VAT on taxable goods and services and remit it monthly to KRA. The authority claims it will widen the tax base and boost collections from KSh653 billion to over KSh1 trillion.

Treasury issues new conditions for PAYE, VAT and income tax reductions

February 24, 2026 由 AI 报道

The government has outlined new conditions that must be fulfilled before implementing its planned reductions in key taxes, including Pay As You Earn (PAYE), Value Added Tax (VAT), and income tax, as it seeks to balance fiscal sustainability with taxpayer relief. The policy shift comes nearly three weeks after assurances from President William Ruto and Treasury Cabinet Secretary John Mbadi that the administration was committed to lowering major taxes to ease the cost of living. Treasury Principal Secretary Chris Kiptoo stated that the tax reduction plans will depend on the expansion of the tax base.

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KRA begins sending tax compliance notices to businesses ahead of April 30

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Communications authority directs cut in mobile termination rates

February 28, 2026 由 AI 报道

The Communications Authority of Kenya has ordered a reduction in mobile termination rates from 41 cents per minute to 30 cents over the next four years. The measure aims to foster price competition among telecom operators and could lead to more affordable call charges for millions of Kenyans. It follows a 2022 study showing current rates exceed the actual cost of service delivery.

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