SmartPhones in Kenya may become more expensive.

The move, aimed at raising additional revenue, risks making handsets less affordable for millions who rely on them for communication, business, education, and access to essential services like mobile money. In a market where most phones are imported, the new levy is expected to ripple through retail prices quickly, potentially slowing the pace of digital inclusion in one of Africa’s most vibrant mobile economies.

For the average buyer, the impact would be immediate and noticeable. A smartphone currently priced at Sh20,000, for example, could climb to approximately Sh25,000 once the excise duty is applied, before other taxes and retailer margins. This substantial jump comes at a time when many Kenyans are already navigating tight budgets amid living costs, making device upgrades or replacements more burdensome for students, small traders, and rural users who depend on affordable technology to stay connected.

The proposal has sparked concerns about its broader economic consequences. Higher phone prices could dampen demand, affect employment in the retail and repair sectors, and hinder innovation-driven growth in a country where mobile technology underpins everything from fintech to agriculture. While the government may view the duty as a way to boost local revenue and possibly encourage domestic assembly, critics argue it could inadvertently widen the digital divide and reduce competitiveness compared to neighboring markets with lighter import burdens.

As parliamentary debates on the Finance Bill 2026 intensify, stakeholders including consumer advocates, mobile operators, and industry players are likely to push for a balanced approach that protects affordability. The coming weeks will determine whether the 25% excise duty proceeds as proposed or undergoes modifications. For now, Kenyans eyeing new devices may want to consider their options before any changes take effect, as the cost of staying connected stands to rise noticeably.