Government targets mobile phones in new tax.

The Communications Authority of Kenya (CA) has announced new tax compliance measures for mobile phones. 

Starting from January 1, 2025, the Kenya Revenue Authority will track all imported and locally assembled mobile phones to ensure tax compliance by manufacturers and distributors.

All local assemblers, importers, retailers, wholesalers, and mobile network operators must ensure that they only sell or distribute tax-compliant mobile phones. 

They are required to upload the International Mobile Equipment Identity (IMEI) number of each assembled or imported mobile device to the KRA portal for tax compliance monitoring.

The CA has notified all stakeholders, including mobile network operators, that starting from January 1, 2025, specific requirements will apply to all mobile phone devices in Kenya. 

This includes mandatory disclosure for the registration of devices in the National Master Database on Tax-Compliant Devices.

Furthermore, mobile network operators must verify the tax compliance status through a whitelist database of compliant devices provided by the authority before connecting devices to their networks.

Mobile phone importers will be required to disclose the IMEI numbers of mobile devices in their import documents submitted to KRA. 

The authority will provide a means to verify the tax compliance status of mobile devices before they are purchased by retailers or end-users.

Operators will also be required to provide grey-listing of non-compliant devices to facilitate regularisation within a prescribed period, failing which the devices will be blacklisted.

These new requirements will only apply to all devices imported or assembled in the country from November 1, 2024. 

Existing devices on the mobile networks by October 31, 2024, will not be affected.

The new measures aim to ensure the integrity and tax compliance of mobile devices in Kenya. 

The CA is mandated by law to regulate various sectors including telecommunications, e-commerce, cyber security, broadcasting, and postal courier services.

This crackdown follows a statement by Senior Government Advisor Moses Kuria, who hinted at the move earlier in the month, indicating that Kenyans who own phones imported into the country without a record of paying applicable taxes will be blocked from being activated on any network.

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