Kenya’s New Device Licensing Rules Puts Small Companies in Jeopardy

The new device licensing in Kenya now puts the existence of small companies in the phone and vehicle tracker industry under great threat due to requirements that the Communications Authority of Kenya has suggested. The rules require distributors and sellers to pay $1,937 equivalent to KES250,000, for licensing, for a 15-year period plus an annual charge of 0.4% of gross turnover.

The CA’s program seeks to control device quality and address issues with consumer safety, e-waste, network security.Only licensed manufacturers and distributors under the new structure will be allowed to import and market mobile phones, auto trackers, and other low-power communication devices.

These rules are projected to have a major influence on Kenya’s reasonably priced gadget industry, especially on small businesses already subject to heavy taxes and limited customer base.

Along with third-party distributors and stores, big companies like Apple and Samsung Electronics will also have to get licenses.