President William Ruto's senior economic advisor, Moses Kuria, now says the government will block mobile phones imported into the country without paying the applicable taxes.
In an update on X on Thursday, October 10, he said the phones would automatically be restricted from activating on any network.
"We will automatically block from activating on any network any mobile phone imported into the country with no record of having paid applicable taxes. Be guided accordingly," Kuria said.
This comes a day after Kuria announced a significant initiative to integrate M-Pesa paybills and till numbers with the Kenya Revenue Authority (KRA) as electronic tax registers (ETRs) by December 2024.
Speaking during a tax summit on Wednesday, he explained that the move would help the government raise more revenue to undertake its programmes.
Read More
"Come Christmas 2024, all pay bills will also be Virtual Electronic Tax Receipts (ETR) for purposes of KRA," he announced.
Kuria noted that the collection of taxes had been burdened on the formal sector, yet the informal sector had more people earning incomes through various businesses.
On the other hand, he acknowledged that there would be some resistance, maintaining that the government was keen on implementing the programme fully.
"I know there is going to be some noise but I also want someone to tell me where we agreed that someone should not pay taxes. Maybe I missed that memo.
"As far as I know, paying taxes is within our constitution and our law. When those people come to our tax bracket maybe those 3 million people (in the formal sector), we will be able to lower the income taxes for them," he stated.
Later on Thursday evening, Kuria shed more light on the matter stating that it would apply to all Payment Service Providers including banks.
"Virtual ETRs will apply to all Payment Service Providers including Telcos and Banks. It's an industry issue," he wrote on X.
Here is the video;
