Tough times for electronic wholesalers and telcos as CA plans to introduce a new Telecommunication Equipment Distributor (TED) license to fight counterfeit electronics.
They will be required to pay Sh250,000 once for 15 years and annual fees based on 0.4% of their turnover, with a minimum of Sh120,000.
The Communications Authority of Kenya (CA) is set to introduce a new Telecommunication Equipment Distributor (TED) license aimed at combating the issue of counterfeit electronics within the market.
According to recent posts on X, the new regulation will impose a one-time fee of Sh250,000 for a validity period of 15 years for electronic wholesalers and telecommunications companies.
Additionally, there will be an annual fee based on 0.4% of the company’s turnover, with a minimum annual fee set at Sh120,000.
This move is part of a broader initiative to regulate and reduce the influx of counterfeit devices in Kenya, affecting both electronic wholesalers and telcos through new regulatory fees.
Kenyan consumers will face higher costs for tech products & services following the introduction of new taxes. Here are full story covering the new taxes:
The Digital Services Tax (DST) has been increased from 1.5% to 3%. This targets non-resident companies offering services like Netflix, Spotify, YouTube, LinkedIn, X, and ride-hailing apps. These companies often pass the tax to consumers, leading to higher subscription fees.
A new 10% excise duty on imported phones has also been introduced. For example, if you bring in a phone worth over Sh258,500, you’ll now pay an extra tax. Customs now requires mandatory declarations of all imported phones to enforce this.
Online Ads for Alcohol & Betting tax: Advertisers of alcohol and betting products will face new taxes designed to discourage these industries. However, it could lead to higher costs for online advertising in Kenya.
Additionally, the tax on crypto transactions is set to be raised to 3% This comes after the government plans to collect Sh65 billion from crypto traders in 2025, up from Sh10 billion in 2024. Crypto users should expect higher costs.
