Kenyan authorities review prospects for crypto and NFT taxation

Kenyan lawmakers are thinking about applying a three percent taxation over cryptocurrency and non-fungible token (NFT) transactions, along with a 15% tax on monetised online content, as stated by Cointelegraph.

According to Cointelegraph, The Finance Bill, 2023 would implement a digital asset tax on “income derived from the transfer or exchange of digital assets,” with the inclusion of certain language for NFTs. It’s believed that the bill will go through five reading rounds, committees and National Assembly-based reports. If approved, it’ll go to the president for final approval.

Based on Cointelegraph’s information, crypto exchanges, which are responsible for crypto or NFT-based transactions, would be needed for tax collection, along with a three percent deduction of transfers’ value for payment to government. Reportedly, unregistered Kenyan exchanges would be required to register under the tax regime. From what it’s understood, the bill intends to apply a 15% tax on “digital content monetisation,” including content creators paid for online promotion of products and services. 

Moreover, the bill’s digital asset section has received mixed responses online. Rufas Kamau, a Kenyan research and markets analyst, tweeted on May 4, 2023, that the three percent tax is “a joke,” and made the point whether the rule applies to “supermarket and credit card loyalty points.”  

(With insights from Cointelegraph)

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