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CA boss reveals implications of using tax non-compliant phones in new directive

CA boss reveals implications of using tax non-compliant phones in new directive
Director-General of the Communications Authority (CA), David Mugonyi appearing before the National Assembly Committee on Wednesday November 6, 2024. PHOTO/https://www.facebook.com/ParliamentKE

Days after Kenya Revenue Authority notified all importers of mobile devices and travellers to declare their International Mobile Equipment Identity (IMEI) numbers at the customs office, the Director-General of the Communications Authority (CA), David Mugonyi has come out to explain the implications of violating the directive.

In a statement shared by the Parliament of Kenya on Thursday, November 7, Mugonyi appeared before the National Assembly’s Committee on Communication, Information, and Innovation chaired by Dagoretti South Member of Parliament John Kiarie where he explained in detail the reasoning behind the new order and its ramifications.

Mugonyi noted that the system is designed to send a notification to users who activate a new device without having paid applicable taxes. The unregistered device’s IMEI will then be placed on a blacklist, preventing it from connecting to any local network until taxes are settled, he revealed during a session with MPs.

the National Assembly’s Committee on Communication, Information, and Innovation during their session on Wednesday November 6, 2024. PHOTO/https://www.facebook.com/ParliamentKE
the National Assembly’s Committee on Communication, Information, and Innovation during their session on Wednesday, November 6, 2024. PHOTO/https://www.facebook.com/ParliamentKE

Tetu MP Geoffrey Wandeto raised concerns about how the system would affect expatriates and visitors, arguing that people’s mobility should not be hindered.

“How will this impact expatriates or people coming back for short visits? We need to allow for mobility of people and their devices,” he posed.

Mugonyi assured the Committee that tourists and diplomats would have a grace period, where their devices would be placed on a temporary greylist to allow usage without immediate tax obligations.

“This greylisting period will be formalized through public participation to ensure transparency and understanding,” he stated.

Director-General of the Communications Authority (CA), David Mugonyi appearing before the National Assembly Committee on Wednesday November 6, 2024. PHOTO/https://www.facebook.com/ParliamentKE
Director-General of the Communications Authority (CA), David Mugonyi appearing before the National Assembly Committee on Wednesday, November 6, 2024. PHOTO/https://www.facebook.com/ParliamentKE

Data privacy

The issue of data privacy also featured in the grilling session with MPs sitting in the committee demanding answers on the proposed system’s implications for privacy, data protection, and its enforcement mechanisms.

MP John Kiarie pressured Mugonyi to specify what the system would access in people’s phones.

“The issue isn’t with registering IMEIs. What exactly are we allowing KRA to access on an individual’s phone under the guise of data protection?” Kiarie asked the CA boss.

Dagoretti South MP John Kiarie chairing a committee meeting on Wednesday November 6, 2024. PHOTO/https://www.facebook.com/ParliamentKE
Dagoretti South MP John Kiarie chairing a committee meeting on Wednesday, November 6, 2024. PHOTO/https://www.facebook.com/ParliamentKE

Kiarie also raised concern indicating that Kenyans would avoid online transactions for fear of being monitored following the introduction of the new directive.

“What can we say to Kenyans who may flee from digital transactions to avoid scrutiny? We must ensure their data remains protected.” He demanded.

In his response, Mugonyi clarified that the IMEI system will not monitor mobile phone transactions. He insisted that the move is only meant to ensure the right products hit the market and that they are tax compliance.

“This engagement has nothing to do with the transactions we carry out on our phones,” he clarified, adding, “We want to ensure the right products are in the country, and the tax compliance aspect is strictly for that. KRA will not have access to people’s data,” Mugonyi assured the country.

Moreover, Mugonyi dispelled fears maintaining that mobile devices registered on Kenyan networks before October 31, 2024, will be exempted from compliance checks.

He made clear that current users will not face disruptions.
“The system is only targeting new mobile devices that will connect to local networks for the first time post-October 31. Previously registered devices will be considered tax compliant,” he stated.

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