Kenya wants to tax smartphones again

Ohayō gozaimasu,
Victoria from Techpoint here,
Here’s what I’ve got for you today:
- Kenya wants to tax smartphones again
- SA Starlink standoff is turning into a political mess
- That Amazon email in your inbox might not be real
Kenya wants to tax smartphones again

Kenya’s Finance Bill 2026 is proposing a major new tax on smartphones, and for a country that has spent years pushing digital inclusion, the move is already raising alarm bells. The bill, tabled on May 13, 2026, introduces a 25% excise duty on mobile phones, a charge that would sit on top of the existing 16% VAT, import declaration fees, railway development levies, and other import-related taxes already attached to devices entering the country.
Treasury Cabinet Secretary John Mbadi says the Finance Bill is aimed at boosting government revenue, with new taxes also targeting crypto wallets, digital services, and card networks. But the proposed smartphone tax is landing especially hard because phones in Kenya are no longer viewed as luxury products; they are basic infrastructure for everyday life.
Retailers and industry players say the impact on consumers could be immediate. Smartphone prices in Kenya have already surged in recent years, with the average selling price jumping from KSh 5,955 in 2019 to nearly KSh 19,000 by mid-2025 due to currency depreciation, import costs, and tighter controls on grey-market devices. Adding another 25% excise duty on top of that could push entry-level smartphones completely out of reach for many low-income households.
That creates a deeper problem for the government itself. Analysts warn the tax could end up driving consumers away from formal retailers and into the grey market, undermining the exact tax revenues the Finance Bill is trying to increase. Kenya has spent years trying to reduce informal phone imports and strengthen official distribution networks, but steep price increases could reverse that progress quickly. It is the classic tax trap: raise costs in the formal market, push people into informal alternatives, collect less revenue than expected, then tighten taxes again to fill the gap.
Kenya is currently seeing its biggest smartphone adoption wave ever, with smartphones now far outnumbering feature phones. Much of that growth has been driven by cheap Android devices and financing plans from companies like M-Kopa, Watu Simu, and Safaricom’s Lipa Pole Pole. Millions of Kenyans now rely on smartphones for mobile banking, online jobs, digital services, and e-learning. But the proposed 25% excise duty could make those financed phones much more expensive for lower-income users.
Kenya has gone through something similar before after removing VAT exemptions on phones in 2013, which caused prices to spike. Well, some fear the Finance Bill 2026 could slow down the country’s digital inclusion progress just as smartphone access was accelerating.


Victoria Fakiya – Senior Writer
Techpoint Digest
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South Africa’s Starlink standoff is turning into a political mess


South Africa’s long-running Starlink drama has hit another awkward standstill, and now the frustration is spilling out into public. More than four months after Communications Minister Solly Malatsi introduced a policy directive aimed at helping Starlink legally enter the country, telecoms regulator ICASA still hasn’t made any meaningful move. By late April and early May 2026, Malatsi appeared visibly irritated, publicly demanding answers from the regulator over why the process was dragging on for so long.
The problem for Malatsi is that, under South African law, he can only go so far. He can issue policy directives and push for reform, but ICASA alone has the power to issue telecom licences. In practical terms, the minister can unlock the gate, but the regulator still decides whether anyone walks through it. Right now, ICASA seems in no rush to move, despite mounting pressure from businesses, investors, and consumers eager for better Internet access.
What makes the deadlock even more striking is how small the actual regulatory hurdle appears to be. According to Starlink, only “four sentences” in ICASA’s licensing rules need to be adjusted for the satellite Internet service to launch nationally within weeks. The sticking point is South Africa’s B-BBEE ownership rules, which require telecom licensees to have 30% black ownership. Starlink wants to qualify instead through Equity Equivalent Investment Programmes, or EEIPs, a workaround already used by companies like Microsoft, IBM, and Amazon Web Services in other industries. Under that model, Starlink would invest in projects like rural school connectivity and technical training rather than handing over equity.
What started as a straightforward licensing issue has since exploded into a much larger political battle. Elon Musk first hinted at bringing Starlink to South Africa back in 2021, but tensions escalated sharply in 2025 when Malatsi, a Democratic Alliance minister serving in the coalition government, pushed for EEIPs to be formally recognised in telecoms. ANC politicians pushed back hard, accusing him of undermining black economic empowerment policy. Then in January 2026, Starlink made things even messier by encouraging South Africans to bombard ICASA with pre-written messages supporting the service, prompting accusations of astroturfing and corporate pressure tactics.
Now ICASA finds itself trapped in the middle of a political fight that goes far beyond internet access. The regulator is being pulled in every direction: businesses want improved connectivity, opposition parties are demanding reform, ANC leaders are defending BEE rules, and legal threats loom regardless of what decision gets made.
Add Elon Musk’s increasingly controversial public image into the mix, and the Starlink debate has become a symbol of South Africa’s broader tensions around investment, empowerment policy, coalition politics, and regulatory uncertainty. While many analysts still believe Starlink could launch by late 2026, the growing political resistance and likely court battles could just as easily push approval into 2027.
That Amazon email in your inbox might not be real


Amazon phishing scams are getting smarter, and South Africans are now being warned that some of the emails landing in their inboxes may not actually be from Amazon at all. Cybersecurity company KnowBe4 recently flagged a new wave of phishing attacks targeting Amazon customers, where scammers send convincing emails claiming there’s a problem with your order, account, or payment method. The trick is simple: panic you into clicking before you think. Some of the emails look polished enough to fool even people who are usually careful online.
What makes this version of the scam more dangerous is how realistic the messages have become. Per the warning, attackers are using fake Amazon branding, order confirmations, password reset notices, and account suspension alerts to pressure users into handing over login details or payment information. In some cases, victims are redirected to cloned websites that look almost identical to Amazon’s real login page. The moment you enter your details, scammers have what they need. Cybersecurity experts say the rise of AI-generated phishing emails is also making scams harder to detect because the grammar mistakes and awkward formatting that used to expose fake emails are disappearing.
The timing also matters. Amazon has been expanding its global footprint, and more South Africans are shopping internationally through platforms linked to Amazon services, making local consumers a bigger target than before. Researchers say scammers are increasingly exploiting trusted global brands because users are more likely to react quickly to messages from companies they recognise. The emotional triggers are usually urgency and fear: “Your account will be suspended,” “Your payment failed,” or “Your parcel cannot be delivered.” The goal is to get you to click first and think later.
Cybersecurity professionals are now urging people to slow down before responding to any email asking for sensitive information. One of the biggest red flags is being pushed to click a link immediately or verify account details through an email attachment. Experts recommend checking the sender’s email address carefully, avoiding links inside suspicious emails, and logging into Amazon directly through the official website instead of using links sent in messages. They also warn users not to reuse passwords across multiple accounts because one compromised password can create a domino effect across banking, social media, and shopping platforms.
The bigger issue here is that phishing scams are no longer just a “tech people” problem. They’re becoming part of everyday digital life. As more shopping, payments, and services move online, scammers are adapting just as fast as the platforms themselves. And honestly, that’s what makes these attacks dangerous: they rely less on hacking systems and more on manipulating people. The emails don’t need to be perfect. They just need one stressed, distracted person to click at the wrong moment.
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Have a superb Thursday!
Victoria Fakiya for Techpoint Africa



