Mobile phones that do not meet requirements set by the government in new tax compliance measures will not be connected to any mobile operators in the country, the Communications Authority of Kenya (CA) has announced.
CA in a notice said that the Kenya Revenue Authority will from January 1, 2025, track all imported and locally assembled mobile phones to monitor tax compliance by manufacturers and distributors.
The Authority said all local assemblers, importers, retailers and wholesalers as well as mobile network operators will be required to ensure that they only retail or distribute tax-compliant mobile phones.
In effect, they 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.
“To ensure integrity and tax compliance of the mobile devices in Kenya, the Authority hereby notifies all stakeholders, including mobile network operators, involved in the local assembly, importation, distribution as well as connection of mobile devices to local networks, that with effect from January 1″, 2025, the following requirements will apply for all mobile phone devices in Kenya.”
“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 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, KRA Crackdown on Mobile phones
In addition, all importers of mobile phones (sale, testing, research or any other purpose) under the new rule 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.
Also Read: CA Issues Directive to Kenyans Selling Tablets, Smartphones & Other IT Equipment
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.
Tax compliance
The authority said the new measure will ensure integrity and tax compliance of the mobile devices in Kenya.
Also Read: Pay Bills, Till Numbers and MPESA Transaction Will Be Linked to KRA
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.
The new crackdown comes after Senior Government Advisor Moses Kuria hinted on the move earlier in the month.
Kuria on Thursday October 16 revealed the plan, noting that the government will soon be targeting Kenyans who own phones imported into the country with no record of having paid applicable taxes by automatically blocking them from being activated on any network on the phones.
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