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Netflix and Uber face taxation in Kenya

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Digital services companies like ride-hailing platform Uber and streaming services like Netflix could face taxation in Kenya.

According to a Bloomberg report, the Kenya Revenue Authority is proposing a new levy that will affect digital marketplace services.

Companies like Uber, Bolt, Netflix as well as Google and YouTube parent Alphabet will be expected to pay tax for services rendered and paid for in the East African country.

The report said the proposed levy will be in addition to a 1.5% digital tax on the value of online transactions introduced by the country's Finance Bill 2020.

In August last year, the Communications Authority of Kenya said it was developing a framework to tax over-the-top technology companies for the incomes they derive from Kenyan consumers.

The draft legislation reportedly proposes a tax on digital marketplace services including search engine services, downloadable digital content, music and video streaming services, subscription-based news, digital transport platforms and web-hosting services.

— The Staff, Connecting Africa

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