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KRA to Monitor Mobile Phones for Tax Compliance Starting 2025

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NAIROBI, Kenya – Starting January 1, 2025, the Kenya Revenue Authority (KRA) will begin monitoring all locally assembled and imported mobile phones sold in Kenya to ensure tax compliance.

This follows new regulations announced by the Communications Authority of Kenya (CA), aimed at tightening oversight on mobile devices in the country.

Manufacturers, importers, retailers, and mobile network operators will be required to upload the International Mobile Equipment Identity (IMEI) numbers of all devices assembled or imported after November 1, 2024, into a dedicated KRA portal.

This process is part of an initiative to track and verify tax compliance for mobile phones.

The CA directive mandates that local assemblers submit the IMEI numbers of each device they produce to the tax authority.

This requirement will apply to all phones assembled or imported for sale, testing, research, or any other purpose.

Retailers and wholesalers have been instructed to only sell mobile phones that are compliant with KRA’s tax requirements.

According to the regulations, KRA will offer a system for verifying the tax compliance status of devices before they are sold to retailers or end-users.

Meanwhile, mobile network operators such as Safaricom, Telkom, and Airtel will only be permitted to connect devices that have been verified as tax-compliant through a whitelist of approved devices provided by KRA.

Additionally, operators must implement a grey-listing system for non-compliant devices, allowing for a period of regularization before they are blacklisted.

“The new requirements will help ensure that all devices connected to Kenyan mobile networks comply with tax regulations,” stated a representative from CA.

However, these new regulations will not affect existing devices already in use before October 31, 2024.

The IMEI registration requirement applies only to devices imported or assembled after November 1, 2024.

IMEI numbers, which are unique 15-digit codes used to identify mobile devices, have traditionally been employed for security purposes, helping law enforcement agencies track stolen or compromised phones.

In many countries, they are not used for tax compliance but instead play a key role in ensuring the security of mobile networks.

In Kenya, the new regulations mark a shift towards using IMEI numbers as a tool for tax enforcement, as authorities seek to prevent tax evasion in the mobile phone industry.
Anthony Kinyua
Anthony Kinyua
Anthony Kinyua brings a unique blend of analytical and creative skills to his role as a storyteller. He is known for his attention to detail, mastery of storytelling techniques, and dedication to high-quality content.

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