Kenya to track mobile phone imports for tax compliance starting January

All imported and locally assembled mobile phones will, from January 1, 2025, be monitored by the Kenya Revenue Authority (KRA) to ensure tax compliance among manufacturers and distributors.

The Communications Authority of Kenya (CA) has announced that local assemblers, importers, retailers, wholesalers, and mobile network operators must upload the International Mobile Equipment Identity (IMEI) number for each assembled or imported mobile device to the KRA portal.

This measure aims to facilitate the monitoring of tax compliance.

“This disclosure is mandatory for registering the devices in the National Master Database on Tax-Compliant Devices,” the CA said in a public notice.

The Authority noted that retailers and wholesalers must ensure they only distribute mobile devices that comply with tax regulations.

Under the new rule, all mobile phone importers—whether for sale, testing, research, or any other purpose—must include the IMEI numbers of their devices in the import documents submitted to the KRA.

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

Verification

Additionally, mobile network operators are required to connect devices to their networks only after verifying their tax compliance status through a whitelist database of compliant devices, which the CA will provide.

The authority has instructed operators to provide a grey-listing of non-compliant devices to facilitate their regularisation within a specified timeframe, failing which these devices will be blacklisted.

“The new requirement 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. This initiative aims to ensure the integrity and tax compliance of mobile devices within Kenya,” the authority clarified.

The CA is mandated by law to regulate telecommunications, e-commerce, cybersecurity, broadcasting, and postal/courier services, and is also responsible for the clearance of permits for approved imported equipment through the Kenya Trade Network Agency National Single Window System.