Era of expensive phones is here as new taxes kick in

A mobile phones shop. PHOTO | SHUTTERSTOCK

One of the biggest drivers of the rapid expansion of the information sector under President Kibaki's regime was the 2008 decision to scrap all taxes charged on imported computer parts and accessories. This, with increased mobile connectivity, drove Kenya to the Silicon Valley of Africa, as distributors of appliances and gadgets fought to get a piece of the action.

But more than a decade later, players in the sector are staring at their first slow down after the government increased levies and taxes on imported phones by up to 41 percent as it moved in to harvest the dividends of its previous stance.

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Note: The results are not exact but very close to the actual.