Kenya is considering a new bill that proposes a 3% tax on cryptocurrency and nonfungible token (NFT) transfers and a 15% tax on digital content monetization.
Introduced on May 4, the Finance Bill 2023 aims to collect income from the transfer or exchange of digital assets, and its language specifically includes NFTs.
Crypto exchanges or those initiating crypto or NFT transfers will have to deduct 3% of the transfer value to pay to the government.
The bill also levies a 15% tax on digital content monetization including sponsorships, merchandise sales, and paid subscriptions.
The bill will undergo five rounds of reading, committee, and report by the National Assembly before it goes to the president for final assent into law.
Crypto advocacy group, Cryptocurrency Kenya, criticized the digital tax, claiming that it should apply to everything digital and that a crypto-only tax is targeted harassment.