During the 63rd Mashujaa Day ceremony at Kipchoge Keino Stadium in Eldoret, President William Ruto said he intends to abolish the 25% import tax on mobile phones, a move he says will make digital services more affordable for Kenyans.

The current Finance Bill 2026 consolidates several levies into a single 25% excise duty applied when a phone is activated, replacing a previous structure that combined VAT, excise duty, import duty, declaration fees and a railway development levy totalling about 55.5% of a device’s value.

Ruto explained that phones are now essential tools – serving as classrooms, marketplaces, banks and offices – and that removing the tax would expand access to digital employment, which the government aims to grow to two million jobs over the next three years.

The proposal is part of four measures announced to increase disposable income, ease property ownership, broaden digital‑economy participation and create youth employment, according to the President’s national address.

Ruto noted that the tax change will still need to pass through parliamentary debate and fiscal approval, with the government pledging a transparent and sustainable implementation process.

The announcement came amid broader public concerns over cost‑of‑living pressures, taxation and unemployment, issues the President said have prompted street protests by young Kenyans.