YouTube has begun withholding 24 per cent of earnings made by Kenyan content creators on the platform. Local YouTubers are directly affected as Kenya does not have a taxation agreement with the United States. Along with other nations, Kenyan creatives have not been spared.
On March 10, 2021, Google, YouTube’s parent company announced its intentions to tax creatives who operated on foreign soil. The American company went on to request users to remit their tax information on the platform’s advertising segment, AdSense so that taxes owed could be properly determined.
The platform further issued a deadline of May 31 after which it would proceed to withhold 24 per cent of earnings made from advertisement views.
In response, Kenyan YouTubers took to social media en masse to express grievances from the declaration. They argued that they did not reside in America and therefore should not have to pay their taxes. Many further disparaged the move stating Kenyans would not benefit from these taxes.
In addition to that, digital content creators have to remit 1.5 percent of their income as digital taxes. The new levy was endorsed by Kenya Revenue Authority (KRA) as a means of increasing the taxable basket of income.
Foreign firms digitally operating in the country are obliged to pay this tax. The authority aims to reach at least 1,000 such ventures, the most prominent being YouTube and Zoom Video Communications.
Kenyans.co.ke spoke to a digital content creator, Michelle Muchai on how the above-mentioned actions would impact Kenyan creatives. She runs a commercial lifestyle Vlog on YouTube.
“It is unfair for America to tax Kenyan YouTubers while the government does nothing to intervene. Moreover, the same government is further hurting us with the digital tax. Digital content creation is a new industry that should be nurtured instead,” she lamented.
As a result of the implementation of the two levies, many YouTube creators have been forced to innovate and expand their avenues of income to stay afloat.
Kenyans.co.ke also consulted with YouTuber Crispin Mugambi alias Prings. He runs The Carlture KE, a YouTube Channel anchored on the local motorsport scene.
“As a result of the extractive taxation, I am forced to look for alternative sources of revenue. I would rather work with sponsors whose realm is outside YouTube or advertise local brands in my uploaded videos,” remarked Mugambi.
