Why it will cost more to buy new phones from tomorrow

A mobile phone shop.

Photo credit: Shutterstock

Buyers of mobile phones face increased prices in a new duty slapped on the gadgets through changes to the laws taking effect Friday.

The Finance Act 2022 has imposed a 10 percent excise duty on the importation of cellular phones in addition to Sh50 excise duty on every imported ready-to-use SIM card.

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 but were introduced during the debate by the House last month.

The duty on SIM cards was, for example, proposed by Kikuyu legislator Kimani Ichung’wah in last-minute amendments to the Bill which were adopted by the House.

“Excise duty on importation of cellular phones shall be at 10 percent of the excisable value,” reads the Act which President Uhuru Kenyatta signed into law last week.

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

Read more here.

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