CA moves in to curb tax leaks from mobile phone sales

Ronald Owili
2 Min Read
PHOTO | File

New mobile devices imported into the country or locally assembled will not be connected to any network without being tax compliant effective November 1, 2024.

In a notice to importers, assemblers and distributors of mobile devices in Kenya, CA the move is expected to ensure integrity and tax compliance of the mobile devices in Kenya.

Beginning January 1, 2025 local assemblers are required to upload the International Mobile Equipment Identity (IMEI) number of each assembled device to a portal provided by the Kenya Revenue Authority (KRA) in order to ensure the devices are tax compliant. The IMEI disclosure will also apply to those importing devices into Kenya for sale, testing, research or any other purpose.

“All mobile phone importers will be required to disclose the IMEI number in their respective import documents to the KRA. This disclosure is mandatory for the registration of the devices in the National Master Database on Tax-Compliant Devices,” said CA.

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The communications regulator also requires mobile device retailers and wholesalers to ensure their only sell devices that are tax complaint.

“The Authority will provide the means by which the tax compliance status of mobile devices can be verified before purchase by retailers or end-users,” added the authority.

The CA directive also applies to mobile network operators who must ensure they only connect devices to their network after verifying the tax compliance status through a whitelist database of compliant devices which will be provided by the authority.

According to statistics from the authority, in a year to June 2024, Kenya had a total of 66.1 million mobile devices registered on the four mobile network operators including Safaricom, Airtel Kenya, Telkom Kenya, Equitel and Jamii Telkom.

During the period, the number of active smartphones were 35.2 million equivalent to 68.2pc of all devices connected to a network while feature phones accounted for 59.9pc equivalent to 30.9 million.

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