This archive report was first published on 1 October 2019.
As the global e-commerce market continues to grow, tax experts are urging the Kenya Revenue Authority (KRA) to modernize its tax structures to collect taxes from multinational digital corporations operating in Kenya.
According to Pan African tax experts, the current tax rules favor developed nations, and African nations should approach negotiations on tax as a bloc to level the playing field for local companies.
The experts argue that digital companies operating in Kenya, such as Twitter, Snapchat, Google, Facebook, and Amazon, have edged out local businesses from the market despite not paying taxes.
With the global e-commerce market valued at $29 trillion in 2017, the KRA is urged to create structures that will facilitate the collection of tax from these digital corporations.
Experts suggest that the government should encourage digital companies to set up offices in Kenya to make it easier for tax collection and to promote local economic growth.
As of 2017, the e-commerce market was valued at $29 trillion, with Twitter, Snapchat, Google, Facebook, and Amazon leading in revenue generations.
