Beginning on January 1, the Kenya Revenue Authority will initiate a tracking system for all mobile phones, both imported and domestically made, in order to monitor the makers and distributors’ compliance with tax regulations.
According to the Communications Authority of Kenya (CA), all local assemblers, importers, retailers, and wholesalers, as well as mobile network operators, are required to upload the International Mobile Equipment Identity (IMEI) number of each constructed or imported mobile device to the Kenya Revenue Authority (KRA) portal in order to speed up the surveillance of tax compliance.
Through a public notice, the California Department of Revenue (CA) said that “this disclosure is essential for the registration of the devices in the National Master Database on Tax-Compliant Devices.”
The authority expects wholesalers and retailers to ensure they only sell or distribute mobile devices that comply with the government’s tax regulations.
The new regulation requires all mobile phone importers to declare the IMEI numbers of mobile devices in the import documentation they submit to the KRA, regardless of whether they are doing so for the purpose of selling, testing, research, or any other reason.
CA said that the authority would provide mechanisms by which merchants or end users would be able to verify the tax compliance status of mobile devices prior to making a purchase.
The authority requires mobile network operators to ensure they only connect devices to their networks after verifying their tax compliance status through a whitelist database of compliant devices. The authority issued this directive.
The CA also expects operators to offer the graylisting of non-compliant devices to allow regularization within a specified timeframe. If the operators fail to meet this requirement, they will blacklist the devices.
The new rule will only apply to gadgets imported into the nation or assembled within its borders starting on November 1, 2024. The authorities stated that the new rule will not affect any current gadgets operating on mobile networks by October 31, 2024.
According to the authorities, the new step would guarantee that mobile devices in Kenya comply with tax regulations since it will protect their integrity.
Among the many things that the CA is required to regulate by law are telecommunications, e-commerce, cyber security, broadcasting, and postal and courier services.
“This disclosure is mandatory for registering devices in the National Master Database on Tax-Compliant Devices,” the CA states.
Additionally, it is the regulatory body that is accountable for approving licenses for authorized imported equipment via the Kenya Trade Network’s national single-window system.