Kenya is bracing for a significant reduction in smartphone imports starting in 2025, following the Kenya Revenue Authority’s (KRA) announcement of stringent new regulations aimed at enhancing tax compliance and market integrity.
Starting January 1, 2025, importers of mobile devices will face stricter requirements, including the mandatory submission of detailed import entries. These entries must specify accurate quantities, comprehensive model descriptions, and International Mobile Equipment Identity (IMEI) numbers for each device, the KRA revealed in a media briefing on Monday.
In addition to the requirements for importers, local device assemblers and manufacturers must register on the KRA Customs portal and report all devices assembled for the Kenyan market, along with their respective IMEI numbers. Even passengers entering the country will need to declare their mobile devices through the F88 passenger declaration form, detailing the IMEI numbers of devices intended for use during their stay.
The measures are part of a broader collaboration between KRA and the Communications Authority of Kenya (CA), which recently introduced its own initiatives to bolster KRA’s tax compliance efforts and reinforce the integrity of Kenya’s mobile device market.
“These new regulations underscore the government’s commitment to ensuring a transparent and compliant mobile device market,” a KRA spokesperson told media. “It is crucial for all stakeholders to obtain the appropriate regulatory clearances and permits from the Communications Authority of Kenya to ensure full compliance with local laws.”
Mobile devices, categorized as restricted imports under the East African Community Customs Management Act (EACCMA, 2004), require regulatory permits from the CA. The KRA’s enhanced measures are designed to curb tax evasion and illegal imports, which have long plagued Kenya’s burgeoning smartphone market.
Industry analysts predict that these regulations could lead to a temporary dip in smartphone imports as importers and manufacturers adjust to the new compliance landscape. However, they also anticipate long-term benefits, including a more regulated market and increased government revenue from the mobile device sector.
The KRA has urged all stakeholders to familiarize themselves with the new regulations to ensure a seamless transition. Failure to comply could result in penalties and disruptions in the importation process.
With these measures, the Kenyan government aims to tighten control over the mobile device market, promoting fair competition and enhancing consumer protection, while also securing its tax revenue base in a rapidly digitalizing economy.