Lawmakers in Kenya are currently considering introducing a 3% tax on cryptocurrency, nonfungible tokens (NFTs) transfers and a 15% tax on income derived from monetized online content. The proposal, which is part of The Finance Bill, 2023, will undergo five rounds of readings, committees and reports by the National Assembly before it can be signed into law. If passed, the tax will be collected from crypto exchanges and those initiating crypto or NFT transfers, with the 3% being applied to the value of the transfer.
The bill has sparked discussion among citizens, with some applauding the official recognition of cryptocurrency by the Kenyan government, while others have voiced their concerns over the 3% rate. The tax is seen as significantly higher when compared to the fees charged by crypto exchanges, such as 0.10% for trading on Binance. Cryptocurrency Kenya have urged that the tax should apply to other areas such as supermarket and credit card loyalty points.
In 2020 the Central Bank of Kenya warned against the use of cryptocurrency, though no outright prohibitions were put in place. However, the Bank issued amendments to its capital market laws that required those dealing in crypto to report on their activities.
Kenya is within the top 20 countries for crypto adoption according to a report by Chainalysis, who placed the country 19th for crypto adoption. The introduction of taxes on cryptocurrency and other digital platforms could lead to increased trust and legitimacy for crypto activities, moving the country higher up in the rankings.
Selena Ramirez
- 2023-05-05
Kenyan lawmakers propose 3% tax on crypto and NFTs
Kenyan lawmakers are discussing a bill to introduce a 3% tax on cryptocurrency and non-fungible token transfers, as well as a 15% tax on income derived from monetised online content. Concerns have been voiced about the 3% rate, with cryptocurrency Kenya pushing for the tax to be applicable in other areas.
