Tech

Kenyan President, Ruto orders review of proposed tax on digital content creators

Published

1 year ago

June 3, 2023

President Williams Ruto of Kenya has ordered for a review of a proposed 15% tax on digital content creators enacted by his predecessor, Uhuru Kenyatta which was captured in the Finance Bill for 2023.

The controversial proposal which raised a lot of dissent in the country, would see local content creators, including bloggers, YouTubers, and social media influencers, paying a 15% tax, with many saying it will amount to double taxation.

The proposal was approved in 2021 by then President Kenyatta who gave the green light to the Value Added Tax (Digital Marketplace Supply) Regulations, 2020 draft.

The bill defined digital marketplace supply as any supply of a service made over a platform that enables the direct interaction between buyers and sellers of services through electronic means.

According to the proposed Finance Bill, “the scope of digital content monetization has now been expanded to include payment gained from advertisements on websites, social media platforms, and other outlets, brand sponsorships, and affiliate marketing.

“Others include subscription services where the audience pays a regular fee to view the content, crowdfunding for a creator and membership programs.

“A person who is required to deduct the digital asset tax shall, within twenty-four hours after making the deduction, remit the amount so deducted to the Commissioner together with a return of the amount of the payment, the amount of tax deducted, and such other information as the Commissioner may require.”

But while speaking during the National Drama Festival at the State House in Nairobi on Friday, Ruto ordered Parliamentary Finance and ICT Committees to rethink the clause on taxing content creators.

“I know there is a proposal in this year’s budget on digital content, and creators are making a statement,” President Ruto said.

“I have told the ICT and Finance committee to work on it. Let’s them give a bit more space,” he added.

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Tech

Egypt’s EdVentures invests in eight ed-tech startups

Published

7 hours ago

October 5, 2024

Isaac Dachen

Egyptian ed-tech startup, EdVentures, has announced the selection of eight new startups which it would invest in and provide funding and support to following a comprehensive evaluation of entrepreneurs participating in EdVentures’ recent business accelerator programme.

EdVentures, the ed-tech focused Venture Capital arm of publishing company, Nahdet Misr Group, has, since its establishment in 2017, been at the forefront of investing in innovative ed-tech startups.

“These eight startups will join a roster of 14 companies that EdVentures has previously invested in, bringing its total portfolio to 22 companies,” a statement by the firm said.

“The selected startups include tutoring platform El Kheta, digital educational content provider Saikoro, creative education platform The Copywriter, and STEM learning solution Techy App.

“The cohort is completed by school transportation solution SchoolZ, STEM learning platform ArmStrong, tutoring service Tutoro, and educational fundraising solution InvestED,” it added.

Tech

Nigerian fintech Fincra secures licence to operate in South Africa

Published

2 days ago

October 3, 2024

Isaac Dachen

Nigeria-based pan-African payment infrastructure provider, Fincra, has been granted a Third Party Payment Provider (TPPP) licence to expand its services into South Africa.

The TPPP will enable the platform to extend its payment solutions to businesses in the country, while the new regulatory approval marks a significant step in Fincra’s mission to make sending and receiving value across Africa and beyond as seamless as sending a text message, according to the startup’s CEO and co-founder, Wole Ayodele.

Ayodele, who expressed the company’s enthusiasm about the development, noted that South Africa represented a prime market for the company’s growth as it represented the company’s vision to build a continent-wide payment infrastructure.

“We have long recognised South Africa as an ideal market for us, and we are excited to contribute with our innovative payment solutions,” Ayodele said.

“The decision to enter South Africa is consistent with our overall strategy of expanding in key African markets.

“According to the International Monetary Fund (IMF), South Africa boasts the largest economy in Africa, with a gross domestic product (GDP) of $373 billion and with it’s diverse economy, supported by sectors such as manufacturing, mining, agriculture, and tourism, provides numerous opportunities for Fincra’s payment solutions to help businesses process transactions efficiently.

“Fincra’s entry into South Africa is part of the company’s vision to build a continent-wide payment infrastructure, ensuring full compliance with local regulations while enabling seamless, secure transactions for businesses.

“Fincra can now offer its services to South African businesses thanks to the TPPP licence, which allows them to access a wider range of payment methods and facilitates smoother cross-border transactions,” he added.