Finance Bill signals expensive locally assembled mobile phones

Latest data from the Communications Authority of Kenya (CA) shows that the number of smartphones in active use stood at 41.5 million at the end of last December, up from 37.4 million last September, representing a 10.9 percent growth.

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The Treasury proposes to exempt the supply of locally assembled and manufactured mobile phones from value-added tax (VAT), moving it from zero-rated treatment, signalling weightier costs for consumers.

“…section A of part I of the first schedule to the VAT Act is amended by adding ‘the supply of locally assembled and manufactured mobile phones,” reads the Finance Bill 2025.

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