NAIROBI, Kenya, Sept 1 – Digital content creators are calling for a suspension of the enforcement of the five percent withholding tax on digital content monetization, arguing that the levy could squeeze small and emerging creators whose earnings are irregular and whose production costs are rising.
The Digital Content Creators Association of Kenya (DCCAK) wants the National Treasury and the Kenya Revenue Authority (KRA) to delay enforcement of the tax pending consultations with the sector, after Google asked Kenyan YouTube creators to submit and verify their KRA PINs by October 1, 2026.
The association says creators have been given a short window to comply with a tax provision that has been in place since 2023, while raising concerns over the lack of clarity on how deductions made from their earnings will be credited against their annual tax liability.
“This is not implementation; it is an ambush,” DCCAK said, arguing that the sector had not been adequately involved in the design and rollout of the enforcement measures.
The association is particularly opposed to the tax being deducted from gross earnings, saying this does not take into account expenses incurred in producing digital content, including internet data, equipment, editing, studios and hired crews.
KRA, however, has previously characterized withholding tax as an advance payment of income tax rather than a final tax. Under this arrangement, the amount withheld can be credited against the creator’s eventual income tax liability.
DCCAK says more clarity is needed on how such credits will reflect on taxpayers’ accounts, how refunds will be processed and the timelines involved.
It argues that delays could leave creators effectively financing government revenue from already-earned income.
The association is also seeking a grace period to prevent payments from being withheld because of administrative or verification delays.
It wants the government to provide clearer safeguards on the handling and retention of creators’ personal and financial information.
“We are not opposed to creators paying their fair share of tax.”
DCCAK contends that the concern is with a system it considers burdensome to small creators and lacking adequate consultation.
The association has called for a formal review of the tax’s impact on Kenya’s growing digital and creative economy, while urging Treasury, KRA and digital platforms to engage creator representatives before full enforcement.
The five percent withholding rate was reduced from 15 percent in 2023, although creators remain liable for income tax on their taxable profits after allowable expenses.
