Kenya to tax content creators

Kenya’s President William Ruto has announced plans to tax Kenyan content creators in a move that has sparked mixed reactions. The proposed Tax Laws (Amendment) Bill, 2024 aims to bring online income earners and digital operators into the tax bracket, following earlier deals Kenya struck with platforms like Google, Meta, and TikTok to enable content creators to monetize their work.

President Ruto emphasized the need for fairness in taxation, noting that while some creators earn as much as KSh 1 million, many others earning less still pay taxes. The bill also proposes a 15% excise duty on social media and internet services, which could raise costs for millions of users, including creators and small businesses.

Treasury Cabinet Secretary John Mbadi introduced the bill as part of efforts to widen Kenya’s tax base after facing backlash earlier this year. Supporters of the bill argue that it promotes fair taxation, while critics fear it could stifle innovation and slow down growth in Kenya’s digital economy.

The debate around taxing the digital space is heating up, with potential implications for creators and businesses alike. The balance between revenue generation and fostering a thriving creative economy remains to be seen.

In other news, Yango, a Russian ride-hailing app, has introduced Driver Cash Advance in Côte d’Ivoire, offering in-app loans of up to 300,000 CFA (roughly $500) to gig drivers. The service, developed in partnership with COFINA and Yabx, aims to empower drivers with quick access to funds for cash flow or investments in their hustle. Yabx’s tech uses AI to assess creditworthiness through drivers’ digital activity, enabling even those without a credit history to qualify for loans.

Meanwhile, South Africa’s Financial Sector Conduct Authority (FSCA) has approved 173 new crypto license applications out of 420 received. The FSCA is stepping up efforts to regulate crypto asset service providers, with companies that meet the criteria granted licenses to operate in the country. The FSCA is also extending compliance deadlines for regulatory exams and introducing new rules to improve financial oversight in the crypto space.

Overall, these developments signal a shift towards stricter regulations in the tech and crypto sectors, with governments looking to balance revenue generation, innovation, and financial stability in the digital economy. Stay tuned for more updates on these and other tech developments from Techpoint. The world of cryptocurrency is constantly evolving, presenting both opportunities and challenges for crypto providers. The key to success lies in their readiness to comply with regulations and adapt to changing market dynamics.

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To stay updated on the latest trends and news in the African tech space, follow Techpoint Africa’s WhatsApp channel. This platform provides valuable insights and information for crypto providers looking to stay ahead of the curve in the ever-changing world of digital currencies.

In conclusion, the crypto industry offers a wealth of opportunities for providers who are willing to adapt, innovate, and comply with regulations. By seizing these opportunities and staying informed about industry trends, crypto providers can position themselves for success in this dynamic and fast-paced sector.