This mandate, developed in partnership with the Communications Authority (CA), was designed to ensure all devices entering Kenya’s market meet tax standards.
Under the new requirements, phone manufacturers, importers, and distributors will have to log each device’s unique IMEI number into a national database that verifies tax compliance before devices can be activated on local networks.
The CA states that mobile network providers will be tasked with ensuring only compliant devices connect to their networks, requiring service providers to verify each device’s tax status in real time.
In Indonesia, we’re already seeing how a similar tax compliance measure is being used to ban the Apple iPhone 16 over the US tech giant’s unmet investment promises.
The policy in Kenya also introduces a “gray-list” feature, allowing non-compliant phones a limited period to achieve compliance or face network disconnection. This initiative will exclude existing devices already registered on Kenya’s networks before October 31, 2024.
This policy targets Kenya’s expanding mobile sector, which saw record growth in both subscriber numbers and internet traffic last year. CA’s latest report indicates that mobile (SIM) subscriptions climbed to 68.9 million by mid-2024, translating to a market penetration rate of 133.7%.
Industry revenue from mobile services rose by 13.2% to KES 384.3 billion from 2022, largely driven by rising smartphone use, expanded 4G and 5G access, and new rural satellite services like Starlink. The CA projects sustained growth across Kenya’s mobile sector, where mobile money use alone saw a 77.3% penetration rate as of June 2024.
