Kenya Imposes 1.5% Tax on Commission Earnings of Foreign Crypto Companies
Kenya has introduced new regulations that levy a 1.5% tax on all commissions earned by foreign crypto companies from their customers. The new regulations extend to all foreign crypto exchanges that earn interest from facilitating buying and selling transactions of digital assets in Kenya, according to Business Daily Africa. The regulations are an expansion of the existing 1.5% digital tax service that the country enforced in January 2021, which was reserved for foreign businesses not registered in Kenya but offering digital services to Kenyans. The definition of digital assets includes cryptocurrencies, NFTs, and other forms of digital assets such as data, images, video, and written content. The new regulations cover the commission fees foreign crypto companies generate from over 4 million users in the region, including Binance, Coinbase, and Kraken. As of the end of 2022, 10.71% of Kenyans owned cryptocurrencies, making the country one of the biggest crypto markets in Africa, with significant crypto adoption globally.