Key Requirements for Mobile Device Compliance In Kenya

In recent years, the mobile telecommunications landscape in Kenya has experienced rapid growth. As the digital economy expands, there is a rising need for regulatory oversight to ensure that devices entering the market meet the required standards. Recognizing this need, the Communications Authority of Kenya (CA), a regulatory body responsible for overseeing Kenya’s ICT industry, has introduced new measures aimed at enhancing the integrity and tax compliance of mobile devices.

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These regulations will come into effect on January 1st, 2025 and are designed to ensure that all mobile devices in Kenya are legally imported, assembled, distributed, and used.

The Role of the Communications Authority of Kenya (CA)

The CA plays a critical role in regulating telecommunications, e-commerce, cybersecurity, broadcasting, and postal services in Kenya. It also manages Kenya’s numbering resources, frequency spectrum, and oversees the Universal Service Fund (USF), which protects the interests of ICT consumers. Additionally, the CA is responsible for facilitating the clearance of permits for imported ICT equipment through the Kenya Trade Network Agency (KenTrade). This clearance is part of the National Single Window System, or TradeNet System, which simplifies the process of importing goods into the country.

As part of its mandate, the CA has implemented measures to ensure that mobile devices in Kenya adhere to the required tax and legal standards, safeguarding consumers and promoting fair trade practices in the ICT sector.

Key Requirements for Mobile Device Compliance

Beginning January 2025, the following compliance measures will be mandatory for all mobile devices in Kenya:

1. Local Assemblers: Local mobile device assemblers must now ensure that each device they assemble is registered with its International Mobile Equipment Identity (IMEI) Number in a portal provided by the Kenya Revenue Authority (KRA). This ensures that all locally assembled devices are tax compliant and can be tracked for taxation and regulatory purposes. By registering the devices, the government ensures accountability and a formal process to monitor device legality.
2. Importers: Mobile device importers, whether for commercial sale, research, testing, or any other purpose, will be required to disclose the IMEI number of each device in their import documents. These documents must be submitted to the KRA, and the disclosed IMEI will be registered in the National Master Database of Tax-Compliant Devices. This process ensures that only authorized and tax-compliant devices enter the Kenyan market, which curbs illegal imports and promotes transparency.
3. Retailers and Wholesalers: Retailers and wholesalers of mobile devices must ensure that they sell only tax-compliant devices. They are responsible for verifying the tax compliance status of mobile devices before distributing or retailing them. The CA will provide a mechanism for retailers to check the compliance status of each device. This ensures that end-users and retailers alike can confidently purchase devices without the risk of non-compliance.
4. Mobile Network Operators: Mobile network operators will only be permitted to connect devices to their networks after confirming the devices’ tax compliance status. The CA will offer a whitelist of compliant devices, allowing network operators to verify and approve devices for connectivity. Non-compliant devices will be placed on a gray list and will require regularization within a specific timeframe, failure to which they will be blacklisted and disconnected from the network permanently.

Timeline and Application of the New Regulations

The new rules will apply to all mobile devices assembled or imported into Kenya starting from November 1st, 2024. All devices already connected to Kenyan mobile networks by October 31st, 2024 will not be affected by the new regulations. This gives stakeholders ample time to adjust to the requirements and ensure compliance with the regulations before the deadline.

The Impact on Stakeholders

The new measures introduced by the CA will impact various stakeholders across the mobile device supply chain, including local assemblers, importers, retailers, and mobile network operators. These stakeholders must prepare to adhere to the new regulations by ensuring they have systems in place to upload, disclose, and verify the IMEI numbers of mobile devices as required.

For local assemblers, this move encourages transparency in the production process and ensures that the devices are registered for tax purposes. Importers will now face stricter scrutiny on device legality, effectively minimizing the risk of tax evasion and illegal imports. Retailers and wholesalers will benefit from a clearer process to verify that their stock is legal and compliant. For mobile network operators, the regulation offers a streamlined method to ensure that the devices they connect to their networks are legally approved, fostering a fair and compliant mobile ecosystem.

Conclusion

The new mobile device compliance requirements in Kenya, spearheaded by the Communications Authority of Kenya, mark a significant step towards improving transparency, integrity, and tax compliance in the ICT sector. By ensuring that all mobile devices are registered, taxed, and legally compliant, the CA is protecting consumers, promoting fair trade, and creating a more organized mobile market.

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As stakeholders prepare to implement these changes before the 2025 deadline, Kenya will be well-positioned to strengthen its ICT industry and enhance consumer confidence in mobile device purchases. For further inquiries or clarifications, stakeholders are encouraged to contact the Communications Authority of Kenya via telephone at 0703 042 000 or 0730 172 000, or email at [email protected].

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