Kenya: Introduced Tax Laws Amendment Bill, 2024

On 1 November 2024, the Tax Laws Amendment Bill was introduced at the National Assembly of Kenya. The Bill proposes replacing the existing 1.5% Digital Service Tax with a Significant Economic Presence (SEP) tax applicable to non-residents earning from digital marketplaces at 3%. Additionally, the Bill establishes a 15% Minimum Top-Up Tax (MTT) aligned with OECD’s Global Anti-Base Erosion Rules. The MTT applies to multinational groups with annual turnovers above KES 104 billion. The Bill also proposes a withholding tax on income from digital marketplaces at 20% for non-residents and 5% for residents, along with excise duty on non-residents providing services via digital platforms.