MOMBASA, Kenya – Mombasa residents have rejected a proposal to impose excise duty on mobile phones at the point of activation, warning that the measure could raise privacy concerns and increase the cost of accessing essential communication services.
The concerns were raised during public participation hearings on the proposed Finance Bill 2026 held at Tononoka Hall, where citizens, community organisations and industry representatives presented their views to the National Assembly’s Finance and National Planning Committee.
Participants argued that mobile phone taxation should remain at the point of purchase rather than activation, saying the current system is easier to administer, more transparent to consumers and less likely to interfere with access to digital services.
Many residents expressed fears that taxing phones upon activation could lead to increased collection of personal information, despite assurances from lawmakers that existing data protection laws would safeguard users’ privacy.
The opposition comes at a time when mobile phones and digital financial services have become central to daily life in Kenya, powering everything from communication and education to business transactions and mobile money payments.
Members of the Changamwe Elite Community Based Organisation (CBO), led by Jeremiah Simiyu Fwamba, urged lawmakers to reject taxes targeting mobile phones, digital payment services and certain categories of non-resident income.
The group also proposed exempting mobile money transactions below Ksh1,000 from Value Added Tax (VAT), arguing that affordable digital payment services are essential for millions of Kenyans who rely on mobile money for day-to-day transactions.
“We need a tax system that supports financial inclusion rather than making digital services more expensive for ordinary citizens,” one participant told the committee.
Residents further appealed to Parliament to reconsider taxation on betting winnings, noting that such earnings have become an important source of income for many young people and households facing economic challenges.
The public hearing also saw calls for faster implementation of tax relief measures for low-income earners. Participants urged lawmakers to support proposals that would exempt employees earning less than Ksh30,000 from Pay As You Earn (PAYE), saying the move would ease the financial burden on struggling families.
Beyond digital taxation, environmental stakeholders used the forum to advocate for incentives that would support Kenya’s growing recycling sector.
The Kenya Association of Waste Recyclers (KAWR) called for amendments to tax laws to allow zero-rating of VAT on machinery and equipment used in recycling, composting and other circular economy activities. The association also proposed tax exemptions on imported recycling equipment and materials used to establish recycling facilities.
Finance and National Planning Committee Chairperson Kimani Kuria assured residents that personal data collected through lawful processes remains protected under Kenya’s data protection framework.
“There is no one who will use your data for any other hidden agenda,” Kuria said, while responding to concerns raised during the hearing.
He also assured participants that views collected from Mombasa and other counties would be taken into account as the committee prepares its report on the Finance Bill 2026.
“This is not an exercise in futility. Every view submitted by Kenyans is important and will be considered,” he added.
The Mombasa forum was part of a nationwide public participation exercise aimed at collecting citizens’ views on proposed tax and revenue measures that will shape Kenya’s fiscal policy in the next financial year.
