Editor's Review

The National Assembly Committee on Finance and Planning slashed the proposed 15 percent withholding tax to 3 percent.

Days after President William Ruto promised to relook into a proposed 15 percent digital tax that was imposed on content creators, the National Assembly Committee on Finance and Planning on Wednesday proposed a revised figure.

Initially, Digital content creators were to pay a proposed 15 percent withholding tax. 

But the Committee on Planning and Finance on Wednesday told the National Assembly session proposed a reduced figure of 3 percent. 

This, according to the chair of the committee Kimani Francis Kuria, is to enable digital content creators to grow their platforms. 

Kuria was presenting a report to the floor of the house after factoring in the opinions of Kenyans.

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"We propose a reduction in the housing fund contribution from 3% to 1.5% to avoid discrimination against those who are earning less," he said.

Digital Content creators pushed for the review of the proposed 15 percent figure saying it would be difficult for many platforms to operate if no amendment is done downwards.

Nairobi Leo Managing Director Martin Wachira (right), Inooro FM Presenter Jeff Kuria, and Jackson Kamau alias DJ Soxxy during the Public Hearing on Finance Bill 2023.

Among those who led the campaign for the review of the tax measures for digital content creators are Nairobi Leo Managing Director Martin Wachira and celebrated Gospel jockey DJ Soxxy, whose real name is Jackson Kamau.

Speaking after the review of the proposal, Wachira said the new percentage is a relief to many content creators who are relying on the platform to eke a living and create employment for others.

"We really pushed for this review and we are happy the president listened to our concerns," he said.

Ruto had promised creatives that the proposed 15% withholding tax for content monetization in the Finance Bill 2023 will be reviewed.

Speaking on Friday, June 2 at State House, President Ruto said that he had directed the ICT and finance committees to review the digital content tax proposal. 

“I know there is a proposal in this year’s budget on digital content tax and creators are making a statement, I have told the ICT committee and finance committee to work on it. Let us give them a little space they work on it,” Ruto said.

He added:

“We are going to work together in that space but we have heard you and we are going to work with you to make sure that does not work against what you want to do.”