Kenya-based content creators have faulted the William Ruto-led government’s plan to introduce a 15% withholding tax on income generated from digital content monetization. The proposal to tax content creators in Kenya is part of the many revisions intended for the Finance Bill. If approved by the nation’s legislature, any income obtained from the monetisation of a creator’s content will be subject to the 15% tax.
Although this move will help the East African country widen its tax base, it’s worth exploring the potential implications for those directly affected. The creator economy in Africa is booming with young individuals leveraging platforms like Instagram, YouTube, and TikTok to advertise products and get paid. Many brands have also signed some of the popular creators, turning them into influencers for products and services.
Interestingly, a Selar report found that 66.9% of digital content creators “hire one staff or more in the first six months of their journey.” Aside from offering jobs which translate into income, the creator market can give Africa’s economy a much-needed boost.
Popular comedian and content creator, Alex Mathenge said he does not have a problem with being taxed, however, the government hasn’t done anything for content creators to earn the right to demand taxes. “You cannot milk a cow which you’ve not given grass,” he said.
He went ahead to state that before the government moves to tax content creators, it must first build an environment that supports the efforts of those in the digital economy.
Another content creator, Mohammed Assad Alby – a TikTok star backed his colleague. According to him, quality jobs are difficult to find in Kenya which is why many youths have shifted to content creation because it offers an innovative way to make money. He however warned that making money in the industry isn’t easy
One thing people don’t know is that before we get to a point where we can earn money from content, we spend so much from our own pockets with a slim chance of making it in the competitive industry. Cameras, laptops, editing software, microphones, lighting, all this equipment is expensive in Kenya.
Alby took it a notch further to blame a section of their industry, especially those known to flood social media with photos of newly-bought luxurious cars and majestic homes for the reason why the government is casting its spotlight on the industry. He pointed out that such lifestyles may have contributed to the mindset that there’s plenty of money in the industry even though this isn’t so.
Another content generator, Kevin Maina believes the policy will further strain the market and possibly discourage other individuals from entering the field. “It is likely to affect the quality of work. Because higher taxes on the same income only strain your capacity to invest more in the craft,” he says.
