In an effort to curb the growing issue of counterfeit electronics, the Communications Authority of Kenya unveiled a proposal to impose new regulatory fees on electronics wholesalers and telecommunications companies.
The new regulations aim to tighten control over the sale of electronic devices such as mobile phones, laptops, and televisions, requiring businesses to obtain a Telecommunication Equipment Distributor (TED) license.
The proposed TED license will require a one-off payment of Sh250,000 for a 15-year period, alongside annual fees calculated as 0.4% of the company’s yearly turnover, with a minimum charge of Sh120,000.
In an article published by Business Daily, these fees could significantly impact larger telcos like Safaricom, which reported Sh10.54 billion in revenue from mobile device sales in 2024, potentially incurring millions in operating costs.
According to the CA, the proposal is a key part of efforts to ensure that all electronic devices in Kenya meet local and international standards, helping to stem the tide of counterfeit products flooding the market. The authority has pointed out that many counterfeit devices lack crucial identification features like the International Mobile Equipment Identity (IMEI) number, making it difficult to track stolen items and leading to tax evasion.
In addition to the TED license, wholesalers and telcos will be required to source their devices from approved ICT equipment importers who must ensure compliance with industry standards. However, critics worry that the new fees could further drive up prices for consumers, who have already seen significant price increases in recent years due to currency depreciation.
Despite these concerns, the CA views the TED license as a necessary measure to protect the integrity of the local market and reduce the influx of substandard electronics.
