Nairobi Kenya — The Communications Authority of Kenya (CAK) is set to collaborate with the Kenya Revenue Authority (KRA) to enhance tax compliance for mobile devices imported or assembled in the country.

On Thursday, the CAK ordered all local mobile phone assemblers and importers to disclose International Mobile Equipment Identity (IMEI) numbers in their import documentation. The KRA will use these IMEI numbers to register the devices in the National Master Database for tax compliance starting November 1, 2024.

CA Director General David Mugonyi stated that mobile network operators will only connect devices after verifying their tax compliance status through a whitelist database provided by the authority. He explained that operators will be required to identify and provide a "gray list" of non-compliant devices within a specified timeframe; after that, these devices will be blacklisted from network access.

Retailers and wholesalers will need to ensure that all mobile devices they sell or distribute are tax-compliant and verified by the CAK. "Retailers and wholesalers must ensure that they only sell or distribute mobile devices that are tax compliant. The authority will provide a means to verify the compliance status of devices before they are purchased by retailers or end users," Mugonyi noted.

Local manufacturers must ensure that each device's IMEI number is synced with the KRA portal to confirm tax compliance.

Mugonyi emphasized that these measures are designed to enhance the integrity and tax compliance of mobile devices in Kenya. "The new requirements will apply only to devices imported or assembled from November 1, 2024. Devices already connected to the mobile network by October 31, 2024, will not be affected," he said.

The CAK is the government's regulatory agency for the ICT industry in Kenya, with responsibilities in telecommunications, e-commerce, cybersecurity, broadcasting, and postal or courier services.