The Kenya Revenue Authority (KRA) will begin monitoring all locally assembled and imported mobile phones sold in Kenya to ensure tax compliance from January 2025.

This is part of new regulations set by the Communication Authority of Kenya (CA), which require manufacturers, importers, retailers, and mobile network operators to submit International Mobile Equipment Identity (IMEI) numbers to a KRA portal.

PHOTO | COURTESY Kenya Revenue Authority

This rule applies to all devices assembled or imported after November 1, 2024.

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For local manufacturers, each device's IMEI number must be submitted to the tax authority, just like imported phones intended for sale, testing, or research.

This information is critical for registering devices in the National Master Database of Tax-Compliant Devices. Retailers and wholesalers will only be allowed to sell phones that comply with these regulations.

KRA will provide a system that allows retailers and customers to verify a device's tax compliance status before purchase. Mobile network operators like Safaricom, Airtel, and Telkom will only connect devices verified through a KRA-approved whitelist of compliant phones.

PHOTO | COURTESY Kenya Revenue Authority

Non-compliant devices will be grey-listed, allowing a set period for regularization. If compliance is not achieved within this time, the devices will be blacklisted.

The new rules will only affect phones assembled or imported after November 1, 2024, leaving existing devices on the network by October 31, 2024, unaffected.

The IMEI, a 15-digit unique identifier for each phone, is traditionally used to verify valid devices and track stolen phones. Globally, IMEI numbers are used for security purposes, but Kenya is among the few jurisdictions now using them for tax compliance.