Lessons Kenya can learn from taxation of the digital marketplace

In the 2019 Budget Speech, the then Treasury Cabinet Secretary acknowledged that the challenges posed by digital economy revolve around reliance on intangibles, massive use of data and widespread adoption of multi-sided business models.

It is also difficult to determine the jurisdiction in which value creation occurs. Such challenges resulted in the erosion of the country’s tax base hence low tax revenue. To address them, the CS proposed a number of tax measures aimed at taxation of income generated from the digital economy.