Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Business of Tech

Kenyans to pay more for cellphones due to new taxes

Article Image
Kenyan mobile phone buyers will now pay more for cellphones and SIM cards after new duties came into effect on July 1, 2022.

The East African country's government, under the Finance Act 2022, has imposed a 10% excise duty on the importation of cellular phones in addition to 50 Kenyan shillings (US$0.42) excise duty on every imported ready-to-use SIM card.

Even though the two new duties on the purchase and use of mobile phones were not part of the original Finance Bill 2022 submitted by Treasury Secretary Ukur Yatani, they were introduced during the debate by the Kenyan parliament in June 2022.

The new duty will be calculated based on the cost of the mobile phones ordered into Kenya as well as with other taxes and levies.

The tax on SIM cards was first proposed by legislator Kimani Ichung'wah and was adopted by the country's government at the last minute.

Taxes on big tech

The Finance Act is an extension of previous laws that Kenya enforced on digital platforms and services in previous years.

In 2019, Kenya's Finance Bill 2019 contained a 1.5% tax on the value of all transactions that digital platforms generate from the country.

The Bill also introduced marketplace regulations, of a 14% VAT on all e-commerce transactions.

The digital service tax officially came into effect at the beginning of January 2021.

Data from GSMA Intelligence shows that there were 63.48 million cellular mobile connections in Kenya at the start of 2022 and those mobile connections increased by 3.7 million between 2021 and 2022.

Related posts:

*Top image is of young men using a cellphone. (Source: created by wirestock - www.freepik.com).

— Matshepo Sehloho, Associate Editor, Connecting Africa

Innovation hub

Video

Interview: Qualcomm execs on mentorship for African startups

Qualcomm Technology VP for Engineering, Sudeepto Roy, and Elizabeth Migwalla, VP for Government Affairs, join Connecting Africa for a video interview about Qualcomm's Make in Africa Mentorship Program.

Story

Hot startup of the month: Pan-African fintech KamaPay

This month's hot startup is pan-African fintech KamaPay, which helps individuals and businesses make cross-border payments on the continent.

More Innovation hub

Latest video

More videos

Sponsored video

More videos

Industry announcements

More Industry announcements

Flash poll

All polls

Africa Tech Perspectives

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

Story

Challenges and opportunities for women's tech careers

A new survey reveals that COVID-19, the cost-of-living crisis, skills shortages and a lack of mentorship have negatively affected women's career development over the past two years.

Story

Survey: Opportunities for Women in Tech

Take our new survey for women across Asia, Europe and Africa looking at the biggest challenges and opportunities for women-led enterprises and trends in tech careers for women.

More AfricaCom perspectives

Upcoming events

London Tech Week
June 13-16, 2023
Queen Elizabeth II Centre, Broad Sanctuary, London SW1P 3EE
Cybertech Africa 2023
August 1-2, 2023
Kigali Convention Center, Kigali, Rwanda
Africa Tech Festival, Home of AfricaCom and AfricaTech
November 13-16, 2023
CTICC, Cape Town
More Upcoming events

Guest Perspectives

Story

Omdia View: February 2023

By Omdia Analysts

In February 2023 key events in the Middle East and Africa included a major Internet project for Africa's underserved by Liquid Intelligent Technologies and Microsoft as well as a 5G launch in Tanzania – that and more in this month's Omdia View.

Story

Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

More Guest Perspectives

Partner perspectives

All Partner Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up