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Kenya Revenue Authority Publishes Digital Tax Bill

Updated: Jun 17, 2020

On 10 June, the Kenya Tax Authority (KRA) published a draft Bill entitled The Value Added Tax (Digital Marketplace Supply) Regulations 2020. The KRA argues that while online businesses including tech giants Netflix, Google and other Over the Top (OTT) operators are not physically located in Kenya, they enjoy revenue through their local operations and will be liable for Value Added Tax (VAT).


The KRA is targeting companies active in the digital economy as it seeks to address budget deficits. To address this, it is therefore seeking novel sources of revenue. In 2019, the KRA hoped to introduce digital taxation via the Finance Bill however this was opposed by many stakeholders.


The Regulations prescribe that VAT will be levied on the following:

  • All downloadable digital content including downloading of mobile apps.

  • e-Books and movies.

  • All subscription-based media including news, magazines, journals, streaming television shows, music, podcasts and online gaming.