The Kenyan Government has commenced regulatory processes aimed at taxing online content channels especially YouTube and Netflix.
In a move targeting foreign online streaming services, the government, through the Communications Authority of Kenya (CA) intends to have over the top services (OTT) declare income earned from Kenyan consumers.
CA’s Director General, Francis Wangusi, indicated that this is standard practice already working in developed countries.
“Many countries especially developed ones have policies that guide these services, and that is where we are heading to as a country,” Mr. Wangusi said, adding that traditional distribution channels have been weakened.
“I believe the OTTs will declare the correct revenues, considering that the international community is also watching them,” Mr. Wangusi said, adding that once a policy is developed the government will have grounds to shut down those that will not adhere to the rules.
The proposed policy framework will also ensure that foreign advertisements that air in the Kenyan market are subjected to taxation.
