Kenya to impose tax on digital-asset transactions

Kenyan authorities plan to impose a 3% tax on digital asset transactions to stabilise the domestic economy. Bloomberg.

Local news agency Kenyans shared the government\’s definition of cryptocurrencies:

“A ‘digital asset’ includes any value that is not tangible, as well as cryptocurrencies, tokens and codes stored in digital form and generated by cryptographic means or otherwise, under any name, which can be transmitted, stored or exchanged electronically,” the document states.

According to the UN report, approximately 8.5% of Kenya\’s population or 4.25 million people own cryptocurrency, placing the country fifth in the world for global adoption of digital assets.

The bill also states that monetization of digital content will require a 15% deduction, and the top personal income tax rate will rise from 30% to 35%.

Kenyan President William Ruto pledged to double state revenue to 5 trillion shillings ($36.7 billion) over five years and to reduce the country\’s accumulated debt obligations to spur economic growth.

In March, U.S. President Joe Biden proposed changes to the taxation of cryptocurrency transactions. He aims to raise industry revenue to $24 billion.