Electronics dealers to face costly licenses

Electronics distributors and phone sellers in Kenya are bracing for significant changes as regulators introduce new licensing requirements aimed at improving market standards and consumer protection.

Under the new regulations set to take effect in Q2 2025, mobile phone distributors will need to pay an annual license fee of KES 500,000, while retailers must secure verification licenses at KES 100,000. These licenses will mandate sellers to verify the authenticity of devices before sale.

The regulatory body's proposal comes as part of a broader initiative to combat counterfeit electronics and enhance market oversight. License fees will be structured according to business size and import volume, potentially impacting operational costs across the sector.

"This is a significant step toward protecting consumers and ensuring market quality," said a regulatory spokesperson. The new framework will require all electronics importers to obtain specific licenses, adding another layer of compliance for businesses operating in the space.

While the regulatory body emphasizes the benefits of improved consumer protection and market standards, industry stakeholders have an opportunity to provide feedback during the ongoing public consultation period. The changes are expected to reshape the electronics retail landscape, particularly affecting small and medium-sized businesses.

The implementation timeline gives businesses approximately six months to prepare for the new requirements, though some industry observers suggest this might be challenging for smaller retailers who will need to adjust their business models to accommodate the additional costs.