The High Court of Kenya has issued orders on the move by the government aiming to track all imported and locally assembled mobile phones to monitor tax compliance by manufacturers and distributors, as the government hopes to broaden its tax base.
Communication Authority of Kenya (CA) in a notice on October 24 said that the Kenya Revenue Authority (KRA) was to commence the tracking from January 1, 2025.
High Court Judge Justice Chacha Mwita in response to a petition filed by Katiba institute has issued a conservatory order suspending implementation of the notice issued by CA as well as the subsequent notice by KRA.
“That in the meantime, a conservatory is hereby issued suspending implementation of the notice issued by Communication Authority of Kenya on 24th October 2024 titled Public Notice on enhancing tax compliance of mobile Devices in Kenya as well as the subsequent notice by Kenya Revenue authority on 5th November 2024 until 18th December 2024,” part of the ruling read.
“Take notice that any disobedience or non-observance of the order of the court served herewith will result in penal consequences to you and any other person(s) disobeying and not observing the same.”
Local assemblers, importers, retailers and wholesalers as well as mobile network operators were to ensure that they only retail or distribute tax-compliant mobile phones.
CA announced that local dealers 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.
Also Read: Govt Targets Mobile Phones in New Tax Crackdown
Petitioners Argument of Use of Mobile Phones
However, Katiba Institute argued that IMEI numbers allow mobile phone providers to pinpoint an individual’s location within a 100-meter radius and give insight into a person’s communication history.
“Without the proper safeguards, it appears that the government is usurping authorities it does not have in the first place to establish a mass surveillance system. If CA and KRA are given access to mobile service provider information, their IMEI database allows them to monitor people’s movements and calls in an unprecedented way,” read part of the petition.
“Katiba Institute contends that these regulations/notices are problematic. One problematic aspect is the new requirement that individuals declare their mobile phones’ IMEI numbers. Upon the registration of phones, IMEI numbers constitute personal data.”
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The Petitioner further opined that IMEI numbers when read in combination with specific data held by mobile service providers, can identify a person’s susceptible information, including location and communication history.
Also Read: KRA Issues Fresh Directive on Mobile Phones
Communication Authority Directives
The authority had 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.
In addition, all importers of mobile phones (sale, testing, research or any other purpose) under the new rule was reqiured to disclose the IMEI numbers of mobile devices in their respective import documents submitted to KRA.
Meanwhile KRA in a statement issued on November 5, directed that all importers of mobile devices will be required to submit detailed import entries for all mobile devices with accurate quantities, proper model descriptions/specifications, and their respective IMEI numbers in the Customs system.
In a further bid to tighten controls, the KRA announced that passengers entering Kenya will now be required to declare specific details about their mobile devices at the port of entry.
As part of this declaration, travelers will need to provide the IMEI numbers of their devices on the F88 form, ensuring compliance with new regulations.
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