Grace Ashiru
President William Ruto has unveiled plans to introduce taxation for Kenyan content creators, particularly those benefiting from monetization opportunities introduced earlier this year.
Speaking during the KEPSA 20th Anniversary in Nairobi, Ruto underscored the importance of equitable taxation, pointing out that while some creators earn up to KSh 1 million, many others with lower incomes still contribute their share in 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?” he remarked.
The proposed Tax Laws (Amendment) Bill, 2024, seeks to include online income earners and digital operators in the tax framework. This initiative follows earlier agreements Kenya reached with platforms like Google, Meta, and TikTok, enabling creators to monetize their content.
Ruto praised the diverse talents of 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, a move that could increase costs for millions of users, including content creators and small businesses.
Treasury Cabinet Secretary John Mbadi, who tabled the bill, described it as a strategic effort to broaden Kenya’s tax base following the backlash against the Finance Bill 2024 earlier this year.
The proposal has sparked mixed reactions. While some applaud the government’s push for equitable taxation, others warn that it could hinder innovation and impede the growth of Kenya’s dynamic digital economy.
The conversation surrounding taxation in the digital space is intensifying, raising questions about its potential impact on creators and businesses. Whether this move will successfully balance the need for increased revenue generation with the goal of nurturing a thriving creative economy is yet to be determined.
