Kenya’s tax on foreign digital platforms doubled to 3%. Here is what actually changed
Kenya's SEPT tax on foreign digital platforms doubled to 3% and collected KES 1.609 billion. Who pays it, explained...
✨ Key Highlights
Kenya Revenue Authority (KRA) has effectively doubled its tax on foreign digital platforms to 3%, under a new Significant Economic Presence Tax (SEPT). This change aims to tax companies selling digital services in Kenya without a physical presence.
- SEPT collected KES 1.609 billion in its first full year, a significant increase from the previous year, impacting foreign platforms selling services like streaming and cloud computing.
- The KRA is the key organization implementing and collecting this tax.
- While the tax rate on platforms doubled, the 16% VAT on consumer subscriptions advertised prices remains unchanged for Kenyan users.
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Kenya’s competition bill would let a regulator police how Uber and Bolt treat drivers - July 2026
Kenya's Competition (Amendment) Bill, 2026 proposes new regulations empowering the Competition Authority of Kenya to police business practices concerning ride-hailing platform drivers. Separately, the Kenya Revenue Authority has effectively doubled its tax on foreign digital platforms to 3% under a new Significant Economic Presence Tax, targeting companies selling digital services in Kenya without a physical presence. At the same time, Google has introduced a new account recovery method requiring users to record a short video of their face, which has drawn significant criticism due to privacy concerns. These developments highlight growing regulatory scrutiny of digital platforms across Africa.
