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Kenya’s Digital Tax Will ‘Undermine Online Businesses’

Kenya’s newly introduced tax on digital services will negatively affect online business, analysts say.

Social media influencers, who are popular in Kenya, are among those the Kenya Revenue Authority (KRA) say will have to pay the new levy.

Dr Mohammed Bahaiders – who set up a digital platform for youth to run businesses – says the new tax will decrease income.

“The rich will continue being rich while the poor will remain poor and the gap will continue increasing,” Dr Bahaiders told BBC Swahili.

The tax will be 1.5% of the total value of business services rendered through online platforms.

Sale services offered by social media influencers as well as e-learning materials are among those listed to pay the levy.

The new tax law took effect on 1 January but was widely discussed on social media platforms on Tuesday when KRA launched an online public education campaign.

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