Kenyan content creators are set to face a new tax deduction after TikTok began asking them to submit personal and residency details to comply with Kenya’s tax requirements.Kenyans.co.ke learned on Wednesday that the notification, sent through ‘TikTok Announcements’, directs creators to complete a Kenyan tax form and states that the information will help verify their tax responsibility.The form requires users to identify themselves as either residents or non-residents of Kenya, determining whether TikTok applies the 5 per cent or 20 per cent withholding rate.Creators are required to provide their names, email addresses, residential addresses, country of residence, and residential status, although providing an address is not mandatory.This comes as Kenya introduced withholding tax on digital content income in July 2023 through the Finance Bill 2023, requiring residents to have 5 per cent deducted while non-residents face a 20 per cent deduction.The withholding tax applies to digital content monetization, including advertising, sponsorships, affiliate commissions, subscriptions, merchandise licensing, memberships, photo or music licensing, and crowdfunding commissions.For creators, the deduction means money earned through eligible TikTok programmes could reach their accounts after tax has already been withheld, potentially reducing their immediate payouts.However, the withheld amount is an advance payment rather than the creator’s final tax bill, thus creators must still declare their full income when filing annual returns.Kenyan TikTok earners currently make money through LIVE and video gifts, subscriptions, and the Work With Artist programme, while several other monetization features remain unavailable locally, and in Africa at large.Those unavailable options include the Creator Rewards Programme, TikTok Shop, Creator Marketplace and Pulse, which are among the platform’s monetisation products but have not been launched for Kenyan creators.The tax collection system was strengthened in December 2024 when legislation made digital marketplace and platform operators responsible for deducting tax, whether based in Kenya or elsewhere.This enforcement comes years after TikTok agreed to establish a continental operations and coordination office in Nairobi following an August 2023 virtual meeting between President William Ruto and CEO Shou Zi Chew.The Nairobi office was expected to coordinate TikTok’s African operations, while the platform pledged closer cooperation with Kenya on content moderation, local hiring, creator monetization, and training programs.TikTok has not announced the withholding start date, the rate it will apply to specific payouts, or what happens if creators delay completing the form, advising them to act soon.
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