The Communications Authority of Kenya (CA) has announced new regulations for the mobile device market, set to take effect on January 1, 2025.
The comprehensive set of requirements will impact local assemblers, importers, retailers, wholesalers, and mobile network operators alike, marking a pivotal change in how mobile devices are managed and regulated in Kenya.
As part of the new regulations, local device assemblers will be mandated to upload the International Mobile Equipment Identity (IMEI) numbers of their assembled devices to a portal provided by the Kenya Revenue Authority (KRA).
This initiative aims to ensure that all locally assembled devices are thoroughly tracked for tax compliance, thereby fostering transparency and accountability within the industry.
Importers, too, will be under the spotlight. All mobile phone importers must disclose the IMEI numbers of devices in their import documentation submitted to the KRA.
This disclosure is vital for the registration of devices in the National Master Database of Tax-Compliant Devices, paving the way for better regulation and monitoring of imported technology.
Retailers and wholesalers play a crucial role in this new framework. They will be required to ensure that they only handle mobile devices that meet tax compliance standards.
The CA promises to facilitate this process by providing a mechanism for retailers and consumers alike to verify the compliance status of devices before purchase.
Mobile network operators will also be key players in this regulatory landscape.
They will be tasked with connecting only those devices that have been confirmed as tax compliant, using a whitelist database shared by the Authority.
Non-compliant devices will be gray-listed, giving importers and assemblers a chance to regularize before a potential blacklist is enforced.
It’s important to note that these regulations will apply to all devices imported or assembled in Kenya starting from November 1, 2024, while existing devices on mobile networks by October 31, 2024, will remain unaffected.
This gradual implementation aims to provide stakeholders with ample time to adapt to the new requirements.
The new measures come against a backdrop of concerns regarding tax compliance within the mobile device sector, where non-compliance has been a persistent issue.
By tightening the reins, the CA hopes to not only bolster government revenue through improved compliance but also assure consumers that the devices they purchase are legitimate and traceable.
For stakeholders across the ICT value chain, this transitional period beckons both challenges and opportunities.
While the regulatory requirements may pose initial hurdles, they also signal a shift toward a more organized and transparent framework that could foster growth and innovation within the industry.
The repercussions of non-compliance could lead to significant hardships, including restricted sales and operations, making it imperative for everyone involved to prioritize compliance as the new 2025 benchmark approaches.
