According to the CS, the move replaces what had effectively become a cumulative tax burden of nearly 55 per cent on imported phones.
“Phone prices will not go up because we have removed all the other taxes and replaced them with one single tax,” the CS said.
His remarks come amid growing public criticism and concern over several proposed tax measures contained in the Finance Bill 2026.
Kenyans on social media and consumer lobby groups have questioned whether the new proposals could push up the cost of essential goods, particularly smartphones, which have become a critical tool for communication, education, business and access to digital services.
Mbadi maintained that the government’s intention is not to make phones more expensive, but to simplify the taxation system and reduce multiple layers of charges that have historically affected import costs.
He explained that under the previous framework, imported phones attracted several taxes and duties at different stages, increasing the final retail price paid by consumers.
By consolidating the charges into one tax, the Treasury believes the market will become more predictable and transparent for both importers and buyers.
The CS also defended the broader objectives of the Finance Bill 2026, saying the government is seeking to widen the tax base while supporting local economic growth and maintaining revenue collection targets.
The proposed Bill has, however, continued to trigger debate among Kenyans, with critics warning that some of the measures could increase the cost of living at a time when many households are already struggling with high prices of basic commodities.
Economists and industry players are expected to closely analyse the proposed smartphone tax changes to determine whether consumers will ultimately benefit from the revised structure or face hidden costs through higher retail prices.
The mobile phone market remains one of the fastest-growing sectors in Kenya, driven by rising internet penetration and increasing demand for digital services.
Any tax adjustment affecting smartphones is therefore likely to attract significant public interest due to the devices’ central role in daily life and economic activity.