Tourists, transit travellers and other short-stay visitors coming to Kenya will be spared from having to declare their mobile devices when they arrive in the country under the new rules meant to curb tax evasion in the mobile phone industry.
Kenya Revenue Authority (KRA) commissioner for customs and border control Lilian Nyawanda, in response to the Business Daily’s queries, said only Kenyans returning home will be required to declare their devices.
The exemption is meant to ease the burden of compliance for foreigners coming into the country, allowing them to use their devices without the need to declare or pay taxes for them.
“Yes, there are provisions for exemptions for tourists and temporary visitors,” said Ms Nyawanda.
“Devices on roaming (foreign) numbers do not need to go through any declaration process. Visitors who buy local SIM cards will have support available to help them complete registration,” she added.
In a public notice on Tuesday, KRA said from January next year, passengers “entering the territory of Kenya will declare the details and respective IMEI numbers for their mobile devices intended for use.” IMEI is a unique number used to identify a device.
The requirement had rattled the hospital industry, fearing the move would stifle tourism as it was projected to put an undue compliance burden on visitors, thus derailing the sector.
Ms Nyawanda said KRA’s exemption of tourists is meant to “facilitate the convenience of visitors, ensuring they can use their devices during their stay without additional financial burden.”
Returning Kenyans will, however, have to declare their devices’ IMEI, allowing the taxman to know if taxes have been paid for the phone.
The returnees will be allowed duty-free use of their devices provided they cost less than $2,000 (Sh257,900), while smartphones beyond this value will attract import duty payment.
Already, the Communications Authority of Kenya has ordered all local phone assemblers, distributors, and importers to submit the IMEI numbers of all their devices to the taxman, meaning KRA will have details of all phones in the country by the end of the year.
To further streamline the process, KRA is also digitising the F88 form used to declare any equipment a passenger is bringing into the country. This means the system will automatically detect and flag any unrecognised IMEI numbers.
All IMEIs submitted to the taxman by local dealers will be white-listed, and phones whose IMEI numbers will not be submitted will be blocked by the regulator by the end of the year.
KRA said the move is meant to end tax evasion through mobile phone smuggling and dumping in the country, forcing dealers to pay taxes for the phones they sell or have them blocked by the communications regulator.
“This system ensures that all importers, manufacturers, and users of mobile devices comply with existing tax laws, creating a level playing field for businesses and enhancing revenue collection,” Ms Nyawanda said.
The move is part of KRA’s efforts to increase tax revenues, by utilising technology to net tax evaders and force compliance. This year alone, KRA seeks to increase its collections by Sh700 billion to Sh3.1 trillion primarily by enhancing efficiency and sealing tax loopholes.
