The Communications Authority of Kenya (CA) is addressing the flood of counterfeit electronics prevalent in Kenya. With up to 40% of mobile phones in use estimated to be fake, the CA has introduced a new Telecommunication Equipment Distributor (TED) licence to regulate distribution and ensure gadgets meet both international and local standards.
Under the new rules, electronics wholesalers and telcos will be required to pay a one-time licensing fee of KSH 250,000 (USD 1,933.49) for a 15-year licence. Additionally, they’ll be required to pay an annual fee of 0.4% of their turnover.
Latest: M-PESA's Users Mark a Milestone in Advancing Financial Inclusion in Kenya
Counterfeits on the Rise
Kenya’s subsequent counterfeit electronics account for KSH 40 billion in annual losses and contribute to an estimated KSH 153 billion in untapped tax revenue from illicit trade.
The TED licence mandates distributors to provide after-sales support and warranties, while, in tandem, the Anti-Counterfeit Authority (ACA), in collaboration with the Kenya Bureau of Standards (KEBS), has rolled out systems like the Anti-Counterfeit Authority Integrated Management System (AIMS) to target counterfeit goods at the source.
“We also have an import module where we ensure that whoever is bringing goods into the country does it through the system,” ACA Chief Executive, Robi Njoroge, explained. Additionally, the introduction of a web-based platform will allow consumers to verify the authenticity of devices using IMEI numbers, further protecting them from substandard products.
According to Statista, Kenya’s electronics market is projected to grow significantly, with revenue expected to hit USD 3.44 billion by 2025. Telephony will dominate, contributing USD 2.44 billion to the market. The annual growth rate (7.81%) could push the market to USD 4.31 billion by 2028, indicating the need for counteractive counterfeit regulation to ensure a standardized market.
Kenya in the Spotlight:
GSMA Africa Releases Reports to Boost Kenya’s Digital Economy and Connectivity
Kenya Sees Strong Growth in 2023/2024 With Rising Mobile and Internet Subscriptions
Closing the Digital Gap: Kenya's Ambitious ICT Plan and Regional Integration
