Kenya targets Visa, Mastercard, Microsoft in sweeping digital tax overhaul
Kenya plans to widen taxes on digital payments and software services, pulling firms like Visa, Mastercard, and Microsoft deeper into its revenue net as the government seeks new revenue source. The…
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The useful update
- Kenya plans to widen taxes on digital payments and software services, pulling firms like Visa, Mastercard, and Microsoft deeper into its revenue net as the government seeks new revenue source
- Kenya targets Visa, Mastercard, Microsoft in sweeping digital tax overhaul
The stakes
- At stake is how far Kenya can push digital taxation without slowing the growth of a tech sector the country has spent years promoting as a regional engine for innovation and investment
- The proposed amendments also broaden royalty payments to cover software-related charges “whether in the form of licence, development, training, maintenance or support fees.”
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Original report Kenya targets Visa, Mastercard, Microsoft in sweeping digital tax overhaul
Publisher: TechCabal · Published May 13, 9:53 am · techcabal.com
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The short version
Kenya plans to widen taxes on digital payments and software services, pulling firms like Visa, Mastercard, and Microsoft deeper into its revenue net as the government seeks new revenue source. The…
New tax proposal could raise the cost of cross-border technology services in Kenya, with implications for banks, fintechs, and startups
The proposal, contained in the proposed Finance Bill 2026, expands the definition of “royalty” under the Income Tax Act to cover payment card schemes, digital platforms, and software-related services that underpin Kenya’s banking and startup economy
What happened
- Kenya plans to widen taxes on digital payments and software services, pulling firms like Visa, Mastercard, and Microsoft deeper into its revenue net as the government seeks new revenue source
- Kenya targets Visa, Mastercard, Microsoft in sweeping digital tax overhaul
- New tax proposal could raise the cost of cross-border technology services in Kenya, with implications for banks, fintechs, and startups
- The proposal, contained in the proposed Finance Bill 2026, expands the definition of “royalty” under the Income Tax Act to cover payment card schemes, digital platforms, and software-related services that underpin Kenya’s banking and startup economy
- The move could raise the cost of cross-border technology services in one of Africa’s largest digital economies, with implications for banks, fintechs, and startups that rely heavily on foreign cloud infrastructure, payment rails, and enterprise software
Why this matters
- At stake is how far Kenya can push digital taxation without slowing the growth of a tech sector the country has spent years promoting as a regional engine for innovation and investment
- The proposed amendments also broaden royalty payments to cover software-related charges “whether in the form of licence, development, training, maintenance or support fees.”
- The practical value is the source trail: TechCabal is the place to check before acting on prices, dates, availability, or local implications
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Original articleKenya’s Finance Bill targets digital payment rails and software services
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Original articleKenya’s Finance Bill targets digital payment rails and software services
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Original articleKenya’s Finance Bill targets digital payment rails and software services
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