Ruto Defends Plans to Tax Content Creators Amid Digital Monetisation Push

Date:

NAIROBI, Kenya – President William Ruto has announced plans to tax content creators benefiting from monetisation schemes introduced earlier this year, a move he says will create fairness in the tax system.

Speaking during the 20th-anniversary celebrations of the Kenya Private Sector Alliance (KEPSA) in Nairobi, Ruto highlighted the success of his government’s negotiations with major digital platforms, including TikTok and Facebook, which enabled Kenyan creators to earn money from their content.

“I negotiated with TikTok and Facebook, making Kenya one of only four countries where creators can monetise their accounts,” Ruto said, adding that some creators now earn up to Ksh.1 million.

The president argued that taxing such earnings is necessary for equity, noting that lower-income earners already contribute taxes.

“Someone earning Ksh.20,000 or Ksh.30,000 pays tax. If you earn Ksh.1 million, 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 said.

The push to tax digital content creators aligns with the government’s proposed Tax Laws (Amendment) Bill, 2024, which seeks to widen the tax bracket to include digital operators.

The bill, currently undergoing public participation, is set for its Second Reading in Parliament.

This comes after Ruto’s announcement in April that agreements with platforms such as Google, Meta, and TikTok would allow Kenyan content creators to monetise their work.

According to Ruto, the initiative aims to empower the country’s youth, who have shown immense creativity across fields such as music, digital design, and animation.

However, Ruto’s claim that Kenya is among only four countries with such monetisation options has raised questions.

Google’s YouTube policies list 12 African countries, including Kenya, as part of its monetised markets.

Other countries include Nigeria, South Africa, Morocco, and Egypt.

Meta, on the other hand, has long provided monetisation tools but primarily through branded content and sponsored campaigns.

The platform recently expanded its options, enabling payments for content like Reels.
Anthony Kinyua
Anthony Kinyua
Anthony Kinyua brings a unique blend of analytical and creative skills to his role as a storyteller. He is known for his attention to detail, mastery of storytelling techniques, and dedication to high-quality content.

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