07 February 2025

Proposed new licensing rules and fees from the Communications Authority of Kenya (CA) could financially impact distributors of terminal electronic devices and complex network equipment as well as satellite internet service providers (ISPs).

Plans for a new licence, ‘the Telecom Equipment Distributor (TED) licence,’ is aimed at limiting counterfeit electronics, and will mean that distributors of terminal electronic devices and complex network equipment will need to apply for a licence by paying KSh5,000. There will also be a licence fee set at KSh250,000, renewable after 15 years, and an annual operating fee charged at 0.4% of turnover or a minimum of KSh120,000.

The CA has already introduced a web-based platform that enables Kenyans to ascertain the validity of their device brands. An attempt to require individuals to declare the International Mobile Equipment Identity (IMEI) numbers of their devices was suspended after data privacy concerns were expressed.

The CA has also introduced a proposal to significantly increase the 15-year licensing fees for satellite ISPs from $12,302 to $115,331. The proposed new rules also include an annual levy of 0.4% of gross turnover.
The proposal includes progressive elements, such as allowing satellite ISPs to engage in terrestrial cable operations, telemetry and space research.