Kenya Revenue Authority (KRA) is set to collaborate with the Communications Authority of Kenya (CA) in the new tax compliance bid.
The collaboration, which targets mobile phone assemblers, aims to ensure the integrity and tax compliance of mobile devices in the country.
In a public notice published on Thursday, October 24, 2024, the CA directed all mobile network operators to connect only tax-compliant through a whitelist database of compliant devices provided by the Authority starting January 1, 2025.
In addition to tax compliance, the authority stated that operators will also be required to provide for the gray-listing of non-compliant devices, failing which the devices will be blacklisted.
“To ensure integrity and tax compliance of the mobile devices in Kenya, the Authority hereby notifies all stakeholders, including mobile network operators, involved in the local assembly, importation, distribution, and connection of mobile devices to local networks, that with effect from January 1, 2025, the following requirements will apply for all mobile phone devices in Kenya,” CA directed.
“Mobile network operators must ensure that they only connect devices to their networks after verifying the tax compliance status through a whitelist database of compliant devices, which will be provided by the Authority. Operators will also be required to provide for the gray-listing of non-compliant devices to facilitate regularization within a prescribed period, failure to which the devices will thereafter be blacklisted.”
Additionally, all local device assemblers will be required to upload the International Mobile Equipment Identity (IMEI) numbers of all assembled devices to the portal provided by KRA.
“All local device assemblies must upload the International Mobile Equipment Identity (IMEI) Number of each assembled device to the KRA-provided portal. This will ensure that all locally assembled devices are tax-compliant,” the CA public notice read.
The authority further clarified that the new directives only apply to all devices imported or assembled in the country.
“The new requirements 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, “CA public notice read.
Directive to retailers and wholesalers
Retailers and wholesalers have been directed to only deal with mobile devices that are tax-compliant.
“Retailers and wholesalers of mobile devices must ensure that they only retail or distribute mobile devices that are tax-compliant. 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,” the CA public notice read.
PUBLIC NOTICE
— Communications Authority of Kenya (CA) (@CA_Kenya) October 24, 2024
Enhancing Integrity and Tax Compliance of Mobile Devices in Kenya@Mugonyid @marywambui_m @MoICTKenya @KRACorporate pic.twitter.com/SLrxUcariT
