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    Electronics' Distributors Face Higher Costs as Regulator Introduces New License

    Brian
    By Brian Nzomo
    - January 06, 2025
    - January 06, 2025
    Kenya Business newsPublic PolicyTechnology
    Electronics' Distributors Face Higher Costs as Regulator Introduces New License

    The Communications Authority of Kenya (CA) intends to curb counterfeit electronics by introducing a new license dubbed the ‘Telecom Equipment Distributor (TED) license’.

    • •Distributors of terminal electronic devices and complex network equipment will apply for the license by paying KSh 5,000.
    • •The license fee has been set at KSh 250,000 and will be renewable after 15 years.
    • •The distributors will also pay an annual operating fee charged at 0.4% of turnover or a minimum of KSh 120,000.

    “The scope of the TED license will only include the supply and sale of telecommunication equipment and devices (both ordinary terminal equipment and complex network equipment) and provision of after-sales support through the supply of spares to vendors that purchase from them in order to reduce proliferation of e-waste,” CA said in a statement.

    In February last year, CA announced that up to 40% of mobile phones used by Kenyans are fake. Although these fake devices are cheaper and available, they are prone to damage and lack basic security features. Under the new license, violators will face fines of unto KSh 300, 000.

    The authority introduced a web-based platform that would enable Kenyans to ascertain the validity of their device brands. By keying in their International Mobile Equipment Identity (IMEI), users could determine if they are using counterfeit devices.

    Last year, the Communications Authority of Kenya and the Kenya Revenue Authority (KRA) issued orders requiring individuals, which was later specified to only Kenyan citizens entering the country, to declare the IMEI numbers of their devices. The High Court suspended the directive in December amid fierce public outcry primarily on data privacy concerns.

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