The Kenya Revenue Authority will from January 1 track all imported and locally assembled mobile phones to monitor tax compliance by manufacturers and distributors.
The Communications Authority of Kenya (CA) said all local assemblers, importers, retailers and wholesalers as well as mobile network operators must upload the International Mobile Equipment Identity (IMEI) number of each assembled or imported mobile device to KRA portal to facilitate the tax compliance monitoring.
“This disclosure is mandatory for the registration of the devices in the National Master Database on Tax-Compliant Devices,” CA said in a public notice.
The authority said retailers and wholesalers will be required to ensure that they only retail or distribute mobile devices that are tax compliant.
Under the new rule, all mobile phone importers (sale, testing, research or any other purpose) will be required to disclose the IMEI numbers of mobile devices in their respective import documents submitted to KRA.
“The authority will provide means by which tax compliance status of mobile devices can be verified before purchase by retailers or end-users,” CA said.
The authority further directed that mobile network operators must ensure that they only connect devices to their networks after verifying the tax compliance status through a whitelist database of compliant devices which will be provided by the authority.
CA said operators will also be required to provide the gray-listing of non-compliant devices to facilitate regularization within a prescribed period failing which the devices will thereafter be blacklisted.
“The new requirement will only apply to all devices imported or assemble in the country from November 1, 2024. All existing devices that will be on the mobile networks by October 31, 2024, will not be affected,” the authority said.
The authority said the new measure will ensure integrity and tax compliance of the mobile devices in Kenya.
CA is mandated by law, to among other things, regulate telecommunications, e-commerce, cyber security, broadcasting and postal/couriers services.
It’s also the regulatory agency responsible for clearance of permits for approved imported equipment through the Kenya Trade Network Agency National Single Window System.
