Finance Bill 2026: Mombasa Residents Reject Proposed Excise Duty on Mobile Phones

Residents of Mombasa County have opposed a proposal to impose excise duty on mobile phones at the point of activation, urging Members of Parliament to retain taxation at the point of purchase, citing concerns over data privacy and administrative efficiency.

The views were aired during a public participation forum on the proposed Finance Bill, 2026, Sovereign Wealth Fund Bill, Kenya Revenue Authority (Amendment) Bill, and Central Bank of Kenya (Amendment) Bill held at Tononoka Hall in Mombasa.

Participants argued that taxing mobile phones at the point of purchase would be more transparent to consumers, easier to administer, and less likely to hinder access to communication and digital services. They further raised concerns that activation-based taxation could raise privacy issues due to potential data requirements during phone setup.

Some residents also called for the removal of taxation on winnings, noting that it serves as a key source of income for many Kenyans.

In addition, participants urged the National Assembly to fast-track the proposed exemption on Pay As You Earn (PAYE) for employees earning below Sh30,000, arguing that the move would provide relief to low-income earners.

Members of the Changamwe Elite Community Based Organisation (CBO), led by Mr Jeremiah Simiyu Fwamba, opposed proposed taxes on mobile phones, digital payment services, and non-resident income. The group urged MPs to maintain a simplified tax framework that does not require mandatory collection of personal data at the point of activation.

The CBO further proposed VAT exemptions on mobile money transactions below Sh1,000 to enhance affordability and promote financial inclusion.

Mr Fwamba also recommended a 30 per cent withholding tax on non-resident rental income or the introduction of a competitive flat-rate tax regime with clear compliance guidelines.

Separately, the Kenya Association of Waste Recyclers (KAWR) proposed amendments to the Value Added Tax (VAT) Act and the East African Community Customs Management Act to provide for zero-rating of VAT on machinery, equipment, and plant used in recycling, composting, material recovery, and circular manufacturing processes.

The association also called for exemptions on the importation of recycling and waste processing equipment, as well as inputs used in the construction of recycling facilities, arguing that such measures would promote environmental sustainability and investment in the circular economy.

Addressing residents, the Chairperson of the Finance Committee, Molo MP Kimani Kuria, assured Kenyans that their personal data remains protected under existing data protection laws.

He said the country’s legal framework safeguards personal information, privacy, and dignity, dismissing concerns over potential misuse.

“There’s no one who will use your data for any other hidden agenda,” he said.

Kuria further assured participants that all views collected from Mombasa and other counties during the public participation process will be considered in the Committee’s report.

“This is not an exercise in futility. Every view submitted by Kenyans is important and will be considered,” he added.