Kenya's Finance Bill 2025: 16% VAT on Mobile Phones and More - What You Need to Know
In a move aimed at boosting revenue, Treasury CS John Mbadi has proposed a significant change in the Finance Bill 2025, introducing a 16% Value-Added Tax (VAT) on mobile phones and other previously zero-rated items. This shift from VAT zero-rated to VAT-exempt status is expected to have a substantial impact on consumers and businesses alike. As the bill makes its way through parliament, MPs are being urged to consider the reclassification of various items, which could lead to increased costs for everyday essentials. With the introduction of VAT on mobile phones, Kenyans can expect to pay more for their devices and related services. The proposed changes are part of a broader effort to enhance tax compliance and revenue collection, with popular keywords like 'tax reform', 'VAT exemption', and 'mobile phone tax' being closely watched by industry stakeholders. As the bill continues to evolve, it remains to be seen how these changes will affect the overall economy and consumer behavior.
