KRA Lists New Rules For All Mobile Phones & Passengers Entering Kenya

The  Kenya Revenue Authority (KRA) has issued a new directive to all mobile phone importers, travellers, and local device manufacturers, following the notice by the Communications Authority of Kenya (CA) on plans to crack down on new mobile phones that will not comply with new tax requirements.

In the notice dated Tuesday, November 5, KRA notified all importers of mobile devices and travellers of the customs requirements for implementing the following CA requirements.

To start with, all mobile device importers will be required to submit detailed import entries for all mobile devices in the customs system, with accurate quantities, proper model descriptions/specifications, and their respective International Mobile Equipment Identity (IMEI) numbers.

Furthermore, passengers entering the territory of Kenya will declare the details and the respective IMEI numbers for their mobile devices intended for use, during the stay in the country at the Port of entry on the F88 passenger declaration form.

"Kenya Revenue Authority (KRA) is mandated to collect revenue on behalf of the Government of Kenya. Among the tax laws and regulations it administers, KRA also administers the East African Community Customs Management Act (EACCMA, 2004)," stated KRA in part.

"Pursuant to Part B of the Second Schedule to the East African Community Customs Management Act (EACCMA, 2004), on restricted imports, mobile devices require regulatory permits from the Communications Authority of Kenya (CA)."

Device Assemblers/Manufacturers must register on the Customs portal and submit a report of all devices assembled for the local market and their respective IMEI numbers.

One must also obtain necessary regulatory clearances and permits from the Communications Authority of Kenya (CA). "The Public is therefore notified of this requirement, which will be implemented effective 1st January 2025. Specific guidelines on the system process and how to capture the devices and IMEI numbers for different users will be shared in due course," added the taxman.

This statement comes after CA on Thursday, October 24 announced the requirements for mobile device assemblers, importers, retailers and wholesalers, and mobile network operators set to take effect on January 1, 2025. 

The directives stretch to retailers and wholesalers of mobile devices who 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," added the notice.

Mobile network operators will be compelled to 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 grey-listing of non-compliant devices to facilitate regularization within a prescribed period, failure to which the devices will thereafter be blacklisted.

"The new requirements will only apply to all devices imported or assembled in the country from November 1st, 2024. All existing devices that will be on the Mobile Networks by 31st October 2024 will not be affected," added CA.

Higher Prices

In the long run, the directive could carry the following impacts; Local assemblers and importers targeting the Kenyan market will have to deal with higher costs due to the need to ensure that they are tax-compliant and submit detailed documentation for each device.

These costs could be passed on to Kenyans, thus leading to higher retail prices for the devices.