Kenya's Finance Bill 2025: 16% VAT on Mobile Phones and More - What You Need to Know
In a move set to impact consumer spending, Treasury CS John Mbadi has proposed significant changes to the Finance Bill 2025. The bill suggests introducing a 16% Value-Added Tax (VAT) on mobile phones and other previously zero-rated items, shifting them to VAT-exempt status. This change aims to increase government revenue and align Kenya's tax system with international standards. The introduction of VAT on these items is expected to affect the prices of mobile phones, electronic devices, and other consumer goods. As the bill undergoes review, Kenyans are eager to understand the implications of these changes on their purchasing power and the overall economy. With the implementation of the Finance Bill 2025, consumers can expect to see price adjustments on various products, including mobile phones, laptops, and other electronic devices. The government's decision to impose VAT on these items is part of its efforts to boost revenue collection and promote economic growth. Popular keywords like 'VAT exemption', 'tax revenue', and 'economic growth' are being closely watched as the bill progresses.
