Sun, 27 Oct 2024
The Communications Authority of Kenya ("CA") has announced significant new regulations aimed at enhancing tax compliance and maintaining the integrity of mobile devices within the ICT sector. These regulations will take effect on 01 January 2025, and are critical for local assemblers, importers, retailers, wholesalers, and mobile network operators.
Key Provisions:
Local Assemblers: All locally assembled devices must have their International Mobile Equipment Identity (IMEI) numbers uploaded to the Kenya Revenue Authority (KRA) portal to ensure tax compliance.
Importers: It is mandatory for all mobile phone importers to disclose IMEI numbers in their import documentation, which is essential for registering devices in the National Master Database of Tax-Compliant Devices.
Retailers and Wholesalers: Entities engaged in the retail and wholesale of mobile devices must ensure that they only distribute tax-compliant devices. CA will provide verification tools to confirm compliance status prior to sale.
Mobile Network Operators: Operators are required to connect devices to their networks only after verifying tax compliance through a designated whitelist database. Non-compliant devices may be subject to gray-listing, with a prescribed period for regularisation before potential blacklisting.
Important Dates:
The new requirements will apply to all devices imported or assembled from 1 November 2024
Devices currently in operation on networks as of 31 October 2024 will not be affected by these regulations.
We encourage all stakeholders to take cognisance these impending regulations and prepare accordingly to ensure compliance and avoid potential disruptions.
This alert is for general use only and should not be relied upon without seeking specific legal advice on the matter.
This alert is for general use only and should not be relied upon without seeking specific legal or tax advice on any matter.
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