Tourists and Kenyans importing mobile devices for personal use will not be affected by the new directive on mobile phone registration as announced by Kenya Revenue Authority (KRA), the taxman has revealed.
In a statement obtained by Kenyans.co.ke, KRA revealed that the system will not affect individuals bringing mobile devices through accompanied baggage. Further, they will be allowed to bring in items worth up to $2,000 (Ksh258,000) for personal use without paying duty.
For travelers, tourists, and other visitors, all devices on roaming numbers (foreign tourists who come to the country with foreign numbers) will not be subjected to any declaration process.
“All devices on roaming numbers will not be subjected to any declaration process. Visitors buying local sim cards will have a support process to facilitate their device compliance to access the network,” KRA noted.
KRA offices in Nairobi.
Photo
Kenya Insights
The taxman further announced the new directive to all mobile phone importers, travelers, and local device manufacturers which will take effect on January 1, 2025.
To expand the tax base, KRA is collaborating with the Communications Authority (CA) in implementing a Mobile Device Declaration System under its Enterprise API Integration (EAPI) project.
This initiative is set to ensure proper tax declaration, payment, and verification for mobile devices imported into or assembled within Kenya by using IMEI (International Mobile Equipment Identity) numbers for effective compliance monitoring.
According to KRA, the initiative will not directly increase the cost of importing phones but rather ensure that all imported devices are subject to the applicable taxes.
The system requires importers, manufacturers, and passengers to declare mobile devices using their unique IMEI numbers ensuring all devices entering Kenya are recorded in the tax database.
According to KRA, the declaration system will promote fair tax practices by ensuring all importers, manufacturers, and users of mobile devices comply with existing tax laws, create a level playing field for businesses, and enhance revenue collection.
The new system also aims to support national development, enhance transparency, and reduce tax evasion through IMEI whitelisting.
So, how will the new system by KRA work? Well, all individual and bulk importers and clearing agents will be required to submit IMEI numbers of mobile devices being imported into the iCMS and DIR systems for validation, tax compliance, and whitelisting.
Local assemblers will submit IMEI numbers of assembled devices for the local market in the DIR system for validation and whitelisting. Phone retail distributors with device inventory will have to update their phone IMEI status before January 1, 2025, to be deemed compliant.
Before purchasing a phone, every Kenyan will be required to check the status of the IMEIs and ensure they are not blocked from the network.
If you are a resident of Kenya and you are returning from abroad, you will have to declare mobile devices with their IMEI numbers on the F88 passenger declaration form upon entry, and tax payable where applicable, the taxman explained.
KRA has revealed that they reached this decision after public participation was conducted with key industry players, including manufacturers and importers, to incorporate their feedback into the implementation strategy.
The tax man has revealed that this new system is also coming as a help to Kenyans as it will shield the consumers from counterfeit mobile devices which will be flagged during the IMEI declaration process and handed over to the competent authorities.
KRA has revealed that there will be tough consequences for importers and assemblers who do not follow these new regulations.
“On importation, for devices which have not paid taxes, they will be deposited until such payment is done”, the body revealed.
The new regulations apply only to devices imported or assembled in Kenya from November 1, 2024, onwards.
President William Ruto filing his taxes at the KRA offices on May 26 2023
PCS
