Residents in Mombasa have pushed back against a proposal to introduce an excise duty on mobile phones at the point of activation, warning that the move could raise privacy concerns and make digital communication more costly and complicated.
The concerns were aired during public participation sessions on Monday on the proposed Finance Bill, 2026, alongside discussions on the Sovereign Wealth Fund Bill, Kenya Revenue Authority (Amendment) Bill, and Central Bank of Kenya (Amendment) Bill held at Tononoka Hall.
Those who attended the forum said taxing phones during activation was not the best approach, arguing that charging at the point of purchase would be clearer for consumers, easier to implement, and less disruptive to access to digital services.
Some participants also raised objections to taxes on betting winnings, saying such earnings are relied upon by many households as a source of income and should not be further reduced through additional deductions.
In addition, residents supported proposals targeting low-income earners, urging Parliament to fast-track a plan that would exempt workers earning below Sh30,000 from Pay As You Earn (PAYE), saying it would ease pressure on struggling households.
The Changamwe Elite Community Based Organization, led by Jeremiah Simiyu Fwamba, opposed several tax proposals, including those targeting mobile phones, digital payment platforms, and income earned by non-residents. The group urged lawmakers to retain a simplified tax system that does not require mandatory collection of personal data during phone activation.
The group further pushed for Value Added Tax exemption on mobile money transactions below Sh1,000, saying this would help keep digital payments affordable and protect financial inclusion for low-income users.
On taxation of non-resident rental income, Simiyu proposed either a 30 per cent withholding tax or a flat rate system that is both competitive and supported by clear compliance rules.
The Kenya Association of Waste Recyclers also presented its proposals, calling for amendments to the Value Added Tax Act and the East African Community Customs Management Act to allow zero-rating of VAT on machinery and equipment used in recycling, composting, material recovery, and circular manufacturing processes.
They further urged Parliament to exempt import duty on recycling and waste processing equipment, as well as inputs used in setting up recycling facilities across the country.
Addressing the concerns raised, Finance Committee Chairperson Kimani Kuria assured participants that their personal information remains protected under the country’s data protection laws, stressing that privacy safeguards are firmly in place.
"There’s no one who will use your data for any other hidden agenda," he said.
He added that all submissions collected from Mombasa and other counties would be fully considered during the drafting of the committee’s report.
"This is not an exercise in futility. Every view submitted by Kenyans is important and will be considered," Hon. Kuria added.