President William Ruto unveiled plans to tax Kenyan content creators benefiting from a monetization scheme he introduced earlier this year.
Speaking at the Kenya Private Sector Alliance’s (KEPSA) 20th Anniversary celebration in Nairobi, the President highlighted the significant income generated by some creators and called for fair taxation across the board.
“Some creators now earn up to Ksh 1 million. Someone earning Ksh 20,000 or 30,000 pays tax, if you earn Ksh 1 million,” the President said, “isn’t it correct to contribute something to the tax kitty especially when we’ve enabled you to achieve that? I think that makes sense, at least to me,” he added.
The government is pushing forward the Tax Laws (Amendment) Bill 2024, which aims to include digital operators and online income earners in the tax bracket.
In April, the government signed agreements with Google, META, and TikTok, allowing Kenyan content creators to monetize their work.
“Our highly talented youth are capable of creative excellence in such diverse fields as music, theatre and drama, graphic design and digital animation, fashion and craft, as well as new and emerging fields like virtual and augmented reality,” Ruto said.
The Tax Laws (Amendment) Bill, 2024 also proposes a 15% excise duty on social media and internet services.
If enacted, the initiative would mark a significant shift in the country’s approach to taxing the digital economy, potentially raising costs for millions of users, including content creators and small businesses.
Cabinet Secretary for Treasury, John Mbadi introduced the bill as part of efforts to broaden Kenya’s tax base. The proposal follows public backlash against the Finance Bill 2024, which was rejected earlier this year.
The proposed taxes have triggered mixed reactions. While some applaud the government’s efforts to create a fairer tax system, critics warn that such measures could stifle innovation and growth in Kenya’s thriving digital space.
As the government seeks to balance revenue generation with nurturing a dynamic creative economy, the debate over digital taxation is set to intensify, with far-reaching implications for Kenyan content creators and online businesses.
