Kenya Introduces New Fees To Crack Down On Fake Electronics
The Communications Authority of Kenya is ushering in new licensing rules and fees to crack down on fake electronics in the country. Distributors and telcos must now pay a one-off fee of KSh 250,000 ($1,933.49) for a 15-year licence. They will also be obliged to pay 0.4% of their yearly income as an annual fee, but not under KSh 120,000 ($928.07).
There are also proposals to better regulate satellite internet service providers (ISPs) like Elon Musk’s Starlink.
Why is Kenya introducing a telecom fee?
The new licence, which is called the Telecom Equipment Distributor (TED) licence, aims to reduce counterfeit electronics. The CA wants to ensure that electronics like phones, TVs, laptops, and tablets align with international and local standards. This means wholesalers of terminal electronic devices and complex network equipment must apply for a licence, costing KSh5,000 ($38.58).
There definitely seems to be an issue with fake mobile phones in Kenya, as up to 40% of phones in the market could be fake, according to a CA report. Under the new licence, wholesalers will face fines of up to KSh300,000 ($2,315) for selling fake gadgets.
While the new move aims to protect consumers from fake gadgets, it may also make electronics more expensive.
What other fees are being proposed?
Kenya’s telecom regulator has also introduced a proposal to hike licensing fees for satellite ISPs, TechCabal reports. The proposal will also allow satellite ISPs to engage in terrestrial cable operations, telemetry and space research.
While the proposal aims to help regulate the growing satellite ISP market, there are concerns that smaller providers will be priced out of the market. This is significant for Kenya as the demand for high-speed internet is high, especially in rural and deprived areas.
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