Microsoft, Visa, Pesalink face royalty tax under Finance Bill

Times Tower in Nairobi, the headquarters of Kenya Revenue Authority.  

Photo credit: File | Nation Media Group

Kenya plans to impose tax on royalties earned by digital payment platforms and software providers, a move that could raise the cost of using card schemes such as Visa and enterprise software packages such as Microsoft.

New proposals in the Finance Bill, 2026 expand the definition of royalties – payments made for the use of intellectual property (IP) such as copyrights and patents – to include digital platforms, software systems and payment infrastructure.

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Note: The results are not exact but very close to the actual.