There is a new Kenyan law that mandates digital content creators to pay taxes on their earnings. This legislation aims to regulate the growing digital economy and ensure that content creators contribute to the country’s revenue.
Under the law, platforms facilitating income for creators, such as social media and video-sharing sites, will also be required to adhere to tax regulations which is approximately 1.5% and 3% tax on any digital asset being transferred or exchanged.
The move is part of a broader effort by the Kenyan government to formalize and tax various sectors within the digital landscape, which has seen rapid growth in recent years.
Content creators have argued that the new tax amounts to an additional financial burden.
“The government is not doing right by taxing someone’s creativity. You can imagine when you’re starting out, you are buying equipment from your savings, you are trying to tell stories, using your own platform,” said Dedra. “Then you have to be billed on tax, just because the government is looking at it as an opportunity to make extra money.”
“In Kenya we do not have jobs. Even to go out there and create content, you need money. So, I don’t think they are being fair and currently, everything is being taxed in Kenya,” Tiktok creator Diana Nikita said.
“The economy is not doing so well, there is no money, there is no cash flow,” added Nikita, who has just under 400,000 followers on TikTok.
Many young Kenyans are now using these platforms to sell products and earn a living through monetization.
Some well-established content creators in Kenya said they have no problem paying taxes, but have appealed to the government to create an environment that nurtures and supports the digital economy.
