Ruto Promises Favourable Tax Policies for Phone & Internet Users

An image of social media icons on a mobile phone.
An image of social media icons on display on a mobile phone.
Anadolu Agency

Preident William Ruto has announced the government’s intention to implement favourable tax policies for all smartphone and internet users.

Speaking during eCitizen's first anniversary in Nairobi on Thursday, November 28, the Head of State revealed that the move would help make data affordable for all Kenyans.

During the meeting, President Ruto directed the Information, Communication and Technology (ICT) Cabinet Secretary Margaret Ndung’u to ensure all Kenyans have access to reliable and affordable Internet.

According to Ruto, his administration had made significant investments in better technology by expanding the national fibre optic infrastructure to ensure cheaper internet for all Kenyans.

Ruto
President William Ruto delivering an during the launch of the University of Nairobi’s Silicon Savanah Innovation Park at State House, Nairobi on November 25,2024.
PCS

“The digital ICT ecosystem including cyber cafés, mobile device shops, and auxiliary businesses has flourished, creating jobs, fostering wealth, and driving economic growth,” President Ruto said.

“We are also implementing favourable tax policies and incentives to make smartphones and data affordable for every citizen, leaving no one behind,” he added.

While underscoring the significance of technology in enhancing service delivery, President Ruto also revealed the government’s plan to utilise Artificial Intelligence (AI) to accelerate government initiatives.

According to Ruto, AI offers opportunities to enhance transparency and create smarter systems. For instance, an AI-powered chatbot on eCitizen could provide instant solutions to inquiries, reducing wait times and minimising opportunities for fraud.

“With AI, we can move from reactive to proactive service delivery, anticipating the needs of citizens and designing solutions that meet their expectations,” Ruto commented.

"I call upon everyone here, and all Kenyans as well as our partners and friends, to rally together and build on this success to make Kenya a global leader in digital governance, a hub for innovation and a beacon of transparency and efficiency," the president added.

President Ruto's assurance comes against the backdrop of the government's plan to increase excise duty on the internet and telephone if the new bill which is currently before parliament becomes law. 

According to the Tax Laws and Business Procedures (Amendment) Bill, the government plans to hike the excise duty on the Internet and telephone by 5 per cent from 15 per cent to 20 per cent. 

Mbadi
National Treasury Cabinet Secretary John Mbadi addressing accountants during the second edition of 41st annual ICPAK seminar in Mombasa on November 20, 2024.
Photo
National Treasury