- Kenya Revenue Authority (KRA) collects KSh 1.1 billion in digital taxes between Sept 2023 – June 2025.
- Revenue includes 1.5% levy on local digital platforms and 6% tax on foreign digital companies.
- Online job boards, ride-hailing, e-commerce, and fintech contribute to the digital tax surge.
- Digital tax seen as key to expanding Kenya’s tax base and funding public services.
- Overall tax revenue hit KSh 2.57 trillion in FY 2024/25, up 6.8% from previous year.
The Kenya Revenue Authority (KRA) has reported a breakthrough in taxing the digital economy, collecting a whopping KSh 1.1 billion over 21 months. The revenue, gathered from September 2023 to June 2025, marks a strong push by the government to tap into the booming online economy.
KRA levied taxes on income earned from digital assets and online platforms under the Finance Act of 2024. The measures include a 1.5% levy on local digital services—such as ride-hailing, food delivery, and job sites and a 6% “Significant Economic Presence” (SEP) tax on foreign digital companies operating in Kenya.
This approach has brought previously untaxed sectors into the formal revenue net, including local start-ups and global tech giants.
According to the tax agency, the Sh1.1 billion haul shows that Kenya’s digital sector is not only growing, it’s paying. Platforms in e-commerce, fintech, the gig economy, and digital assets are now part of the country’s expanding tax base.
KRA Commissioner General Humphrey Wattanga credited the revenue boost to smart use of technology, better compliance strategies, and tighter oversight of multinational digital players.
The digital tax success is part of a broader revenue increase. Kenya collected KSh 2.57 trillion in the financial year ending June 2025, a 6.8% rise from the previous year. Agriculture, transport, insurance, and real estate also performed well, but digital taxation was a key contributor.
The introduction of digital taxes sparked protests in 2024 under the #RejectFinanceBill2024 movement. Gig workers, companies like Uber and Bolt, and concerned users argued the taxes would raise prices or harm businesses. However, the latest figures suggest KRA’s strategy worked; taxes were enforced, and revenues rose.
With the digital sector becoming central to Kenya’s economy, KRA is expected to continue monitoring and possibly revising its policies. The digital economy is no longer on the fringe; it’s a core part of Kenya’s financial future.
