High Court Stops KRA, CA From Demanding Kenyans To Register New Mobile Phones For Tax Compliance

The High Court through Justice Chacha Mwita issued a conservatory order against the directive by KRA and the CA pending the hearing and determination of a case filed by Katiba Institute.

High Court Stops KRA, CA From Demanding Kenyans To Register New Mobile Phones For Tax Compliance
Kenyans using their phones. /TECHWEEZ

The High Court has handed both the Communications Authority of Kenya (CA) and the Kenya Revenue Authority (KRA) a big blow in their push to have phone dealers declare their International Mobile Equipment Identity (IMEI) numbers for new devices to ensure tax compliance.

On Friday, November 22, the High Court through Justice Chacha Mwita issued a conservatory order against the directive by KRA and the CA pending the hearing and determination of a case filed by Katiba Institute. The case will be heard on December 18, 2024.

"A conservatory order is hereby issued suspending the implementation of the notice issued by the Communication Authority of Kenya on October 24, 2024, titled "Public Notice Enhancing Tax Compliance of Mobile Devices in Kenya," as well as the subsequent notice by Kenya Revenue Authority on December 18, 2024," read the ruling in part.

"Take notice that any disobedience or non-observance of the order of the court served herewith will result in penal consequences to you and any other person(s) disobeying and not observing the same."

The Milimani Law Courts in Nairobi. /FILE

Katiba Institute had filed a petition at the High Court challenging the constitutionality of the order by the Communications Authority of Kenya (CA) calling for the mandatory registration of phones. It argued that the move by the CA requiring all individuals to register their International Mobile Equipment Identity (IMEI) numbers was unjustified.

Katiba Institute also expressed that the directive would infringe on the data privacy of mobile phone users.

"Upon the registration of phones, IMEI numbers constitute personal data and, when read in combination with specific data held by mobile service providers, can identify a person’s susceptible information, including location and communication history," the lobby group contested.

"In addition, the newly introduced practice of ‘whitelisting’ of devices means that only a device with its IMEI registered on the CAK/KRA databases can connect to mobile networks. Thus, anyone not registering their IMEI cannot buy a SIM card from a Kenyan mobile network provider."

The group also noted that the petition was informed by the lack of Parliament's involvement in making the new regulations.

In the notice issued on October 24, the government agency directed all importers to submit details of imported phones, including cell phone International Mobile Equipment Identity (IMEI) numbers, from January 1, 2025.

Under the new directives, all passengers entering Kenya would also be required to declare their mobile devices on the F88 passenger declaration form and provide the necessary details and IMEI numbers for devices intended for use during their stay.

However, intervention by Tourism Cabinet Secretary Rebecca Miano forced KRA to reconsider the policy targeting tourists entering Kenya. “KRA has announced that tourists will NOT be required to declare their gadgets’ IMEI numbers upon arrival. Kenya’s strategic location as the gateway to East Africa positions it as a regional hub for tourism and business and must therefore remain easily accessible,” Miano said.

The government had previously teased the idea of placing tourists entering Kenya on a 'greylist' to grant them a grace period to comply with the new policy. This was announced by Communications Authority's Director General David Mugonyi during a summon by the National Assembly's Committee on Communication, Information and Innovation.

The Committee demanded clarity on the proposed system's implications for privacy, data protection, and its enforcement mechanisms, especially given concerns about personal data potentially falling into the wrong hands. 

Communication Authority of Kenya (CA) headquarters in Nairobi. /FILE