Government Sets New Rules to Enhance Mobile Device Integrity and Tax Compliance

By Shadrack Nyakoe

The Communications Authority of Kenya (CA) has introduced new regulations aimed at enhancing the integrity and tax compliance of mobile devices in the country.

Starting January 1, 2025, all stakeholders involved in the assembly, importation, distribution, and connection of mobile devices to local networks will be required to adhere to these new rules.

The CA, Kenya’s regulatory body for the ICT industry, oversees telecommunications, e-commerce, cybersecurity, broadcasting, and postal services.

The Authority also manages the country’s numbering and frequency spectrum resources, administers the Universal Service Fund, and protects the interests of ICT consumers.

To further facilitate trade, the CA handles permit clearances for imported type-approved equipment through the Kenya Trade Network Agency’s TradeNet System.

The new regulations stipulate the following requirements for various stakeholders in the mobile device industry: Local Assemblers: All locally assembled mobile devices must have their International Mobile Equipment Identity (IMEI) numbers uploaded to a Kenya Revenue Authority (KRA) portal. This measure ensures that locally assembled devices comply with tax regulations.

Mobile phone importers, whether for sale, testing, research, or other purposes, will need to disclose the IMEI numbers in their import documents submitted to the KRA. This disclosure is mandatory for registering the devices in the National Master Database for Tax-Compliant Devices.

“Businesses dealing in mobile devices must ensure they only sell or distribute tax-compliant devices. The CA will provide tools for verifying a device’s tax compliance status, allowing both retailers and consumers to check before making purchases. Mobile Network Operators Operators will be required to verify the tax compliance status of mobile devices before connecting them to networks, using a whitelist of compliant devices provided by the CA. Additionally, operators must facilitate the regularization of non-compliant devices through a gray-listing process, with non-compliant devices facing blacklisting if not regularized within the prescribed period,” Stated the communication authority in a public notice.

The new rules will apply to all mobile devices imported or assembled in Kenya from November 1, 2024.

Devices already connected to local networks as of October 31, 2024, will not be affected by the new requirements.

These measures are part of the CA’s ongoing efforts to enhance mobile device integrity and ensure tax compliance, aiming to create a more secure and transparent ICT environment in Kenya.

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