Mobile phones face blacklisting as CA targets tax cheats
Mobile phone users in Kenya may soon find themselves on the wrong side of the law for using handsets that are not tax-compliant.
In a notice on Thursday, the Communications Authority of Kenya (CA) has directed all mobile network operators, local assemblers, importers, and dealers to ensure that all mobile phone devices imported or assembled in the country from November 1, 2024, are registered and tax compliant or risk being blacklisted starting next year.
“With effect from January 1, 2025, the following requirements will apply for all mobile phone devices in Kenya,” the Authority stated, noting that all local device assemblies must upload the International Mobile Equipment Identity (IMEI) Number of each handset to the Kenya Revenue Authority (KRA) portal. The watchdog noted that this measure aims to ensure tax compliance.
For players in the mobile phone import business, the CA is asking them to provide the IMEI Number in their respective import documents to KRA for registration in the National Database on Tax Compliant Devices. This call will even include the mobile devices imported for testing, research, or any other purpose.
On the same note, retailers and wholesalers have been directed to ensure that they only distribute or retail mobile devices that are tax compliant, in a process that will be facilitated by CA.
“The Authority will provide the means by which the tax compliance status of mobile devices can be verified before purchase by retailers and end-users,” says CAK in the notice.
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Tax cheats
To eliminate any chances of tax cheats, telcos have been directed to ensure that the devices connecting to their networks are tax-compliant.
This will be made possible by verifying their status through a whitelist database of compliant devices that will be provided by the CA.
Moreover, the operators are also obligated to grey-list non-compliant devices, thus enabling regularization within a given time, failure to which the gadgets will be blacklisted.
“The new requirements will only apply to all devices imported or assembled 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,” CA explained.
Whereas these new measures may create a well-regulated market for mobile phones, push manufacturers to set up assemblies in Kenya, and boost revenue collection, customers might be hit by higher prices as players who avoided the tax net turn compliant.
