- Local assemblers will need to upload the IMEI numbers of assembled devices to the Kenya Revenue Authority (KRA) portal for tax compliance
- Importers of mobile phones must disclose IMEI numbers to register devices in the National Master Database of Tax-Compliant devices
- Retailers and wholesalers must verify tax compliance of devices before sale with tools provided by the CAK
The Communications Authority of Kenya (CAK) has introduced new measures aimed at improving the integrity and tax compliance within the mobile phone industry.
These regulations are set to take effect from 1st January 2025 and will impact various stakeholders involved in the local assembly, importation, distribution, and connection of mobile devices to local networks.
In a public notice released by the CAK, the regulatory agency outlines four key requirements that will apply to mobile devices in Kenya.
1. Local assemblers
According to the notice, local assemblers are now required to upload the International Mobile Equipment Identity (IMEI) number of every assembled device to a Kenya Revenue Authority (KRA) portal.
This will ensure that all locally assembled devices meet the necessary tax compliance requirements. The move is expected to curb the influx of devices that do not meet legal tax obligations.
READ: KRA to monitor M-Pesa paybills for tax evasion with new ETR system
2. Importers
Importers of mobile phones are also required to comply with new regulations. As stated in the notice, importers involved in sales, research, testing, or any other activities will be mandated to disclose the IMEI numbers of their devices to KRA.
This information will be essential in registering the devices in the National Master Database of Tax-Compliant devices.
3. Retailers and wholesalers
Retailers and wholesalers of mobile devices will also be affected by these new rules. They must ensure that the devices they sell or distribute are tax compliant.
The authority will provide them with tools to verify the tax compliance status of these devices before they are purchased by end-users.
4. Mobile network operators
Mobile network operators are required to connect only compliant devices to their networks. The CA will provide a whitelist database of compliant devices for this purpose.
Operators will also be expected to facilitate the regularisation of non-compliant devices by providing a gray-listing service for a specified period.
READ: How much you’ll pay in taxes when importing a vehicle worth Sh2.3M into Kenya
These regulations apply to all mobile devices imported or assembled in Kenya from 1st November 2024.
Devices already in use and connected to the mobile networks by 31st October 2024 will not be affected by these changes.
This content was created with the help of an AI model and verified by the writer.