The Communications Authority of Kenya (CAK) and the Kenya Revenue Authority (KRA) are joining forces to tighten tax regulations on mobile devices imported or assembled within the country.
Beginning November 1, 2024, all local mobile phone assemblers and importers must disclose International Mobile Equipment Identity (IMEI) numbers in their import documentation.
KRA will utilize these IMEI numbers to register devices in the National Master Database for tax compliance purposes.
CA Director General, David Mugonyi announced that mobile network operators will only connect devices after verifying their tax compliance status through a whitelist database provided by the authority.
Operators will be required to identify and provide a “gray list” of non-compliant devices within a specific timeframe, after which these devices will be blacklisted from network access.
Retailers and wholesalers are obligated to ensure that all mobile devices they sell or distribute are tax-compliant and verified by the CAK.
“Retailers and wholesalers must ensure that they only sell or distribute mobile devices that are tax compliant. The authority will provide a means to verify the compliance status of devices before they are purchased by retailers or end users,” Mr Mugonyi stated.
According to the authority, local manufacturers must synchronize each device’s IMEI number with the KRA portal to confirm tax compliance.
Mr Mugonyi emphasized that these measures aim to enhance the integrity and tax compliance of mobile devices in Kenya.
“The new requirements will apply only to devices imported or assembled from November 1, 2024. Devices already connected to the mobile network by October 31, 2024, will not be affected,” he clarified.
The CAK, as the government’s regulatory agency for the ICT industry in Kenya, oversees telecommunications, e-commerce, cybersecurity, broadcasting, and postal or courier services.