Kenya’s draft law proposes tax on second-hand clothes

Kenya's draft Finance Bill 2026 proposes a 25% excise duty on phones and removes VAT exemptions on digital financial services. Salaried workers will not receive relief on Pay As You Earn (PAYE), leading to criticism. Additionally, a new section in the Income Tax Act imposes a 5% tax on the customs value of imported second-hand clothes, which critics argue is inequitable.