President William Ruto has unveiled plans to impose taxes on Kenyan content creators, particularly those benefiting from monetization opportunities introduced earlier this year.
During his speech at the 20th Anniversary of the Kenya Private Sector Alliance (KEPSA) in Nairobi, President Ruto stressed the importance of equitable taxation. He pointed out that while some content creators earn up to KSh 1 million, many others with lower incomes still contribute to taxes. “If you earn KSh 1 million, isn’t it fair to contribute to the tax kitty, especially when we’ve enabled you to reach that level?” Ruto remarked.
The proposed Tax Laws (Amendment) Bill, 2024, seeks to include online income earners and digital operators within the tax framework. This initiative follows previous agreements Kenya made with major platforms such as Google, Meta, and TikTok, which allowed content creators to monetize their work.
President Ruto acknowledged the wide array of talents among Kenyan youth in fields such as music, fashion, and digital animation. However, the bill also introduces a 15% excise duty on social media and internet services, potentially increasing costs for millions of users, including content creators and small businesses.
Treasury Cabinet Secretary John Mbadi, who presented the bill, explained that it is part of a broader strategy to expand Kenya’s tax base, following the backlash against the Finance Bill 2024 earlier this year. The proposal has elicited mixed reactions. Some individuals support the government’s efforts to ensure fair taxation, while critics argue that it could hinder innovation and slow the growth of Kenya’s dynamic digital economy.
The ongoing debate about taxing the digital space is intensifying, with significant implications for both creators and businesses. Whether this move will successfully balance revenue generation with the promotion of a thriving creative economy remains to be seen.
