Updated
Updated · Bloomberg · Jun 18
Kenya Lawmakers Cut Tax Plan to Raise $763 Million, Rejecting 25% Phone Duty
Updated
Updated · Bloomberg · Jun 18

Kenya Lawmakers Cut Tax Plan to Raise $763 Million, Rejecting 25% Phone Duty

1 articles · Updated · Bloomberg · Jun 18

Summary

  • $763 million is now the expected revenue from Kenya’s revised tax package after lawmakers stripped out Treasury measures that had aimed to raise nearly $1 billion.
  • The National Assembly rejected a proposed 25% excise duty on imported mobile phones, one of the most prominent levies in the original plan.
  • Lawmakers also refused to scrap preferential tax treatment for locally assembled electric vehicles and for raw materials used in animal feed and pharmaceuticals.
  • The changes leave Kenya with a smaller revenue haul than the Treasury sought, softening the budget’s tax burden while preserving incentives for selected sectors.

Insights

After lawmakers rejected major tax hikes, how will Kenya fund its billion-dollar budget gap without resorting to more debt?
Are Kenya's new digital and rental taxes creating a silent cost-of-living crisis, despite other controversial proposals being dropped?
Kenya champions local EV assembly yet offers duty-free imports. Is this a brilliant green strategy or a policy at war with itself?