The Kenya Revenue Authority (KRA), in collaboration with the Communication Authority of Kenya (CAK), has introduced stringent measures to mobile phone dealers and network operators in what they term a bid ‘to ensure integrity and tax compliance of mobile devices in Kenya.’
The new tax-compliance requiremnets will affect local assemblers, importers, retailers and wholesalers, and mobile network operators. How, the requirement will only apply to allde vices imported or assembly in the country from November 1st, 2024.
The new requirements are effectively expected to hit make, beginning January 1st, 2025. The information was shared by one of President Ruto’s orbit of advisors, Moses Kuria, on X handle, who reiterated the need for Kenyans to be responsible through tax compliance.
“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, with effect from January 1st, 2025,” the notice read.
To foster tax compliance, all local assemblers will have to upload the International Mobile Equipment Identity (IMEI) numbers of each device to the KRA portal.
Mobile phone importers will as well be required to “disclose the International Mobile Equipment Identity Number in their respective import documents submitted to the Kenya Revenue Authority,” needed for mandatory registration of the devices in the National Master Database for tax compliance.
All retailers and wholesalers of mobile devices will be provided with a means to verify devices and ensure tax compliance before distribution or selling them to consumers.
The authority will also provide the mobile network operators with a means to verify tax compliance status through a whitelist database. Operators will as well be required to “provide for the grey-listing of non-compliant devices to facilitate regularization within a prescribed period, failure to which the devices will thereafter be blacklisted.”
The new requirements has raised questions as to whether the KRA, will now meet its target given the negative deviations it has been reporting since 2023. Another issue that Kenyans have raised, is how the government will ensure that their data and right to privacy will be protected given the level of scrutiny this will mount to.
