Govt Explains What Will Happen to Taxed Phones
Kenya’s Communication Authority (CA) Director General, David Mugonyi, outlined the potential impact on mobile devices if owners fail to meet the new tax compliance requirements, which mandate reporting all devices entering the country, including each device’s International Mobile Equipment Identity (IMEI) number, to customs.
Speaking to the National Assembly’s Committee on Communication, Information, and Innovation (CII), Mugonyi explained that a system will notify users who activate new devices without paying required taxes. Such devices’ IMEI numbers will then be blacklisted, barring them from accessing local networks until the taxes are settled.
“Our goal is to ensure compliance for legitimate products in Kenya. This tax measure is solely for that purpose, and the Kenya Revenue Authority (KRA) will not have access to any personal data,” Mugonyi clarified.
Tetu MP Geoffrey Wandeto raised concerns about the system’s effect on expatriates and short-term visitors, questioning how it would handle devices brought into the country for brief stays. He emphasized the need to facilitate easy movement for individuals and their devices.
In response, Mugonyi explained that these devices would receive a temporary ‘greylist’ status, allowing them network access without immediate tax compliance, with the duration of this grace period to be determined through public consultations for clarity and transparency.
While the initiative is geared toward tax compliance and device authenticity, it has sparked privacy concerns among Kenyans, who fear it could intrude on personal transactions to track non-compliant devices.
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Mugonyi reassured the public that the directive, effective January 2025, would not monitor individual phone transactions but would focus strictly on device integrity and tax requirements. He emphasized, “This measure does not track any personal transactions. It is solely for ensuring compliant products, with no data access for KRA.”
He addressed a query from Dagoretti South MP John Kiarie, who questioned potential KRA access to personal data and noted the risk of discouraging digital transactions if citizens felt their data privacy was compromised. Kiarie called for robust data protection to prevent any negative impact on digital transaction adoption.
Edward Kisiangani, the Principal Secretary for Broadcasting, attending the meeting, highlighted potential issues with international tax obligations, suggesting data-sharing agreements with certain countries to avoid taxing imported devices twice. “Devices may already carry tax implications from other nations, so collaboration on data sharing will prevent double taxation,” he proposed.
While the policy is designed to ensure device compliance and tax obligations, MP Kiarie underscored that privacy safeguards would remain a top legislative priority.
The directive, already in effect as of November 1, applies to all imported or locally assembled devices, with any device connected to networks before October 31 remaining exempt from these requirements.
Govt Explains What Will Happen to Taxed Phones
