Kenya’s Exchequer crossed into the New Year with a wider net following the introduction of a number of taxes, including a digital services tax.
It’s been argued that the digital services tax is retrogressive to the Kenya’s digital ambitions and its quest to be the continent’s innovation hub. On the other hand, the government contends that the tax is designed to achieve fairness in taxation by limiting the amount of untaxed outflows by foreign digital companies operating in Kenya. But is it possible to spur innovation in Kenya by having a favourable tax regime while achieving fairness in taxation?
