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Kenya to launch mobile device registry in tax compliance push

Brian Murimi by Brian Murimi
October 23, 2024
in News
Reading Time: 2 mins read

Kenya’s telecommunications regulator has announced sweeping measures to crack down on tax evasion in the mobile phone sector, requiring all devices to be registered in a national database from January 2025.

The Communications Authority of Kenya (CA) will mandate that all mobile phones imported or assembled locally after November 1, 2024, must have their International Mobile Equipment Identity (IMEI) numbers logged with tax authorities before they can connect to local networks.

“All mobile phone importers will be required to disclose the International Mobile Equipment Identity Number in their respective import documents submitted to the Kenya Revenue Authority,” said David Mugonyi, Director General of the Communications Authority of Kenya.

The new regulations will affect the entire mobile device supply chain, from manufacturers to network operators. Local device assemblers must upload IMEI numbers to a Kenya Revenue Authority portal, while retailers and wholesalers can only distribute tax-compliant devices.

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Mobile network operators face strict requirements to verify device compliance through a whitelist database before allowing network connections. Non-compliant devices will be “grey-listed” temporarily to allow for regularisation, after which they face permanent blacklisting if they fail to comply.

The move marks a significant shift in Kenya’s approach to mobile device regulation, though existing devices in use before October 31, 2024, will be exempt from the new requirements.

Kenya’s mobile sector has seen substantial growth, with the country emerging as a significant market for both imported and locally assembled devices. The new measures aim to ensure this growth is matched by proper tax compliance.

The Communications Authority, which oversees telecommunications, e-commerce, cybersecurity, broadcasting, and postal services in Kenya, will provide verification tools for retailers and end-users to check device compliance before purchase.

The announcement comes as part of efforts to digitise and modernise Kenya’s tax collection systems. The integration with the Kenya Trade Network Agency’s National Single Window System suggests a move toward more streamlined, technology-driven regulatory compliance.

For implementation, the CA will work closely with the Kenya Revenue Authority to maintain the National Master Database on Tax-Compliant Devices, marking the first comprehensive attempt to track mobile devices throughout their lifecycle in the Kenyan market.

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Brian Murimi

Brian Murimi

Brian Murimi is a journalist with major interests in covering tech, corporates, startups and business news. When he's not writing, you can find him gaming, watching football or sipping a nice cup of tea. Send tips via bireri@thesharpdaily.com

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