Kenya has recently proposed a new law, subject to five rounds of readings, committees and reports, charging a 3% transfer tax for cryptocurrency and Non-Fungible Tokens (NFTs) transfers. According to a United Nations report, 8.5% of the population in Kenya, representing 4.25 million people, own cryptocurrency, making it the fifth country with the highest global adoption of cryptocurrency.
In addition to the 3% transfer tax, the said law also seeks to impose a 15% “digital content monetization” tax on content creators and promoters who advertise, promote and monetize their products, services and subscriptions online.
These proposed taxes are, however, receiving varying opinions. While the new project requires no legalization of the cryptocurrency sector, others criticize the 3% tax rate, comparing it to the more reasonable 0.10% transaction fee charged by Binance. The pro-crypto group, Crypto Kenya, believes that such digital taxes should extend to all digital assets, rather than just cryptocurrencies, and that singling out the latter is a form of harassment.
In conclusion, the Kenyan government has proposed a proposed a new tax bill that seeks to levy taxes on transfers of cryptocurrency and non-fungible tokens, as well digital content monetization, among which 15% and 3% respectively. Although the project does not necessarily require the legalization of the crypto sector, it has sparked debates amongst the digital space.
Scarlett Wilson
- 2023-05-05
Proposed Tax Law in Kenya: Debate Among Digital Space
Kenya has recently proposed a new tax bill that seeks to levy taxes on transfers of cryptocurrency and non-fungible tokens, as well digital content monetization, among which 15% and 3% respectively. Although the project does not necessarily require the legalization of the crypto sector, it has sparked debates amongst the digital space.
