Ruto calls for Kenyan content creators to pay taxes following successful negotiation of monetization plan.

President William Ruto has announced plans to tax content creators benefiting from the monetization scheme he brokered in April 2024. During his address at the Kenya Private Sector Alliance’s 20th Anniversary celebration in Nairobi, Ruto explained that the deal has allowed Kenyan content creators to commercialize their work, enabling them to earn millions in the digital space.

The president emphasized that it would be fair for the government to tax these creators, ensuring an equitable environment for all taxpayers. “I negotiated with TikTok and Facebook, making Kenya one of only four countries where creators can monetize their accounts,” he noted.

“Some creators are now earning up to Ksh.1 million. If someone earning Ksh.20,000 or Ksh.30,000 is paying tax, isn’t it fair for those earning Ksh.1 million to contribute as well, especially when we’ve helped you achieve that success? That makes sense to me,” he added.

The government has already started working on taxing the digital sector through the Tax Laws (Amendment) Bill, 2024, which will bring digital operators into the tax bracket. After public participation, the bill is set to proceed to its Second Reading in Parliament.

In April, Ruto announced that the government had signed agreements with Google, META, and TikTok to allow Kenyan content creators to monetize their work. “Our highly talented youth excel in various fields such as music, theatre, graphic design, digital animation, fashion, and even emerging areas like virtual and augmented reality,” Ruto said.

However, Ruto’s statement about Kenya being one of only four countries monetizing creator content contrasts with Google’s monetization policies, which list 12 African countries as part of YouTube’s monetized markets. These include Kenya, Morocco, Nigeria, South Africa, Tunisia, Uganda, Zimbabwe, Egypt, Algeria, Ghana, and Libya.

For Meta, monetization options have been available for some time, initially limited to brands and sponsored campaigns. Currently, more opportunities are available, including payments for content on Reels.