Following the government's latest decision on the Eco Levy, prices of certain products are expected to rise.
According to the Finance Bill 2024 report, the levy will be applied to imported finished goods. Specifically, among the commonly used products affected are smartphones.
As per the initial proposal in the Finance Bill, each smartphone or feature phone (Kabambe) will incur a levy of Ksh225.
However, the committee noted that the proposed charges may be reduced to cushion Kenyans from high commodity prices.
"To address the concerns of a significant majority of stakeholders and to contain the prices of certain critical goods, the Committee proposes to remove the imposition of the levy on diapers, tyres of motorcycles, bicycles, wheelchairs, three-wheeled motorized vehicles (tuk tuks) and reduce the rate of eco levy for certain finished good," read the report in part.
Most phones that are used in the country are usually imported from other countries such as China. For instance, in 2023 alone, over 2 million sets of smartphones were imported to the country.
On the other hand, the Eco Levy also extends to other electronic devices including digital and video cameras, pocket-size radio cassette players, microphones, and speakers.
Imported cameras and video equipment will be subject to a levy of Ksh98, while pocket-size radio cassette players will incur a levy of Ksh225.
The proposed Eco Levy for microphones and speakers was put at Ksh98 per unit.
The Eco Levy was introduced in the Finance Bill 2024 to address environmental degradation. Therefore, the levy targets goods that are perceived to contribute to the pollution of the environment.
Initially, the levy targeted both imported and locally manufactured products, however, after complaints from manufacturers the plan on locally made items was dropped.
