This archive report was first published on 1 July 2020.
On July 1, 2020, President Uhuru Kenyatta signed into law the 2020-21 Budget, the 2020 Finance Bill, and the 2019-20 Third Supplementary Budget at State House, Nairobi.
The new laws will see Kenyans pay a 1.5% Value Added Tax (VAT) on digital services, including online transactions, streaming services, and online gaming.
The 2020 Finance Bill, which is now law, has several amendments aimed at cushioning Kenyans from the effects of the Covid-19 pandemic.
Some of the amendments include the zero-rating of VAT on maize, cassava, and wheat flour for six months and the extension of the zero-rating of VAT on cooking gas for one year.
According to Ukur Yatani, the National Treasury Cabinet Secretary, the Digital Marketplace Supply Regulations, 2020, will see online transactions attract a 1.5% digital tax.
Companies like Netflix, HBO, and Amazon Prime will be included in the tax regime, and failure to comply will result in restriction of access to the Kenyan market.
