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Kenya Introduces 25% Phone Tax at SIM Activation

Netasgard News2026-11-01 08:26 · 1 min read

Kenya's Revenue Authority (KRA) has proposed a 25 percent tax on mobile phones at the point of SIM card activation. The measure aims to address tax evasion linked to consolidated cargo imports. KRA Board Chairperson Ndiritu Muriithi defended the plan, stating it would help close loopholes exploited by large-scale importers.

The tax would apply to all mobile phones purchased through SIM card activation. Muriithi explained that some importers were using existing arrangements to avoid paying taxes on their cargo. The proposal is part of broader efforts to improve tax compliance.

This initiative follows recent reports of tax evasion in the telecommunications sector. The KRA has been working to strengthen its enforcement mechanisms. The new tax is expected to be implemented in the coming months.

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