Meta has announced that starting January 1, 2025, it will begin deducting 5% withholding tax on all payments to Kenyan content creators, in line with changes to local tax laws.
In a notice to creators, the company confirmed that Kenya’s tax regulations now require businesses to deduct and remit withholding tax to the Kenya Revenue Authority (KRA) for payments made to creators based in the country.
“Starting 1 Jan 2025, Kenya Tax law requires all businesses to deduct and remit taxes to the Kenya Revenue Authority (KRA) for any payments made to creators located in Kenya,” Meta stated. “As a result, Meta will deduct 5% withholding tax from all payments made to you, and the same will be reflected in the remittance advice issued to you.”
The deductions will be visible in monthly remittance statements, and creators will receive the net amount after tax directly into their accounts. This move is part of the government’s broader efforts to strengthen tax compliance and expand the tax base in Kenya’s rapidly growing digital economy.
The change affects creators earning through Facebook, Instagram, and other Meta monetisation programmes, who will now be required to reflect the deducted tax in their annual KRA returns. Withholding tax applies to various income types, including professional fees, royalties, dividends, and now payments to digital creators.
Earlier in August 2024, Meta launched two monetisation features for Kenyan creators: In-Stream Ads on Facebook and Facebook Ads on Reels. These features enable creators to earn income from original videos, pre-recorded content, or live stream recordings.
According to Moon Baz, Meta’s Global Partnerships Lead for Africa, Middle East, and Türkiye, the monetisation tools will help grow Kenya’s creative industry while providing sustainable income for content creators.
“Every day, we’re inspired by African creators who use Facebook to tell their stories and connect with audiences,” Baz said. “This expansion empowers eligible creators to earn money and sets a high bar for creativity worldwide.”
