Nairobi, June 18 -- Lawmakers have rejected the National Treasury's proposal to raise excise duty on mobile phones from 10 percent to 25 percent and shift the tax payment point from importation to handset activation, citing concerns over affordability, tax administration and digital inclusion.

In its report on the Finance Bill, 2026, the National Assembly's Departmental Committee on Finance and National Planning recommended deleting the proposal, arguing that it would create compliance challenges, delay revenue collection and expose consumers to uncertainty.

The Treasury had proposed increasing the excise duty on mobile phones to 25 percent while moving the tax point from importation or factory release to the point at which a handset is...