Kenya’s new tax proposals threaten M-KOPA, Sun King phone assembly plants
- The Finance Bill 2026 proposes a 25% excise duty on domestically manufactured smartphones.
- Locally assembled smartphones will lose their zero-rated VAT status, raising their costs.
- Imported finished phones will be exempt from the Import Declaration Fee and Railway Development Levy.
The proposed tax changes in the Finance Bill 2026 could severely undermine the local smartphone assembly industry in Kenya, which has been nurtured through previous supportive policies. This shift not only threatens jobs and local investments but also risks reversing the progress made towards establishing Kenya as a key player in the regional electronics market. It is crucial for policymakers to reconsider these proposals to protect local industries and ensure sustainable economic growth.
