KRA To Cut More From Kenya Meta Content Creators Payouts

In Summary Meta has informedily informed thousands of Kenyan content creators that a 5 per cent withholding tax will apply to all earnings from its platforms starting next year.

The move comes as the Kenya Revenue Authority steps up enforcement on income from digital content monetisation, aligning with existing tax rules introduced in 2023. Creators will receive net payments after the deduction, with the tax reflected in monthly statements.

Meta has notified Kenyan content creators earning from Facebook, Instagram and other platforms that it will start deducting 5 per cent withholding tax on all payouts from January 1, 2026, to comply with Kenya’s tax laws.

In an email notice to affected users, the social media giant said recent changes in local regulations require companies to withhold and remit tax directly to the Kenya Revenue Authority on payments to Kenya-based creators.

“Kenya tax law now requires businesses to deduct and remit withholding tax to KRA on payments made to creators located in Kenya,” the notice reads. “As a result, Meta will deduct 5 per cent withholding tax from all payments made to you.”

The company added that the deduction will appear in monthly remittance advice, and creators will receive the net amount in their accounts. Payments processed from December 2025 onwards will reflect the new rule.

The decision brings Meta in line with a provision in the Finance Act 2023 that subjects income from digital content monetisation to 5 per cent withholding tax for resident creators, with non-residents facing 20 per cent.

Platforms such as YouTube and TikTok have implemented similar deductions where applicable, but Meta’s rollout marks a significant expansion as its monetisation features, including In-Stream Ads and Ads on Reels, gained traction in Kenya last year.

The tax applies at source, meaning creators can claim credit for the withheld amount when filing annual income tax returns with KRA.

It forms part of broader government efforts to capture revenue from the booming digital economy, where influencer marketing, video content and online advertising have created new income streams for young Kenyans.

Industry players have welcomed the clarity but expressed concern over the timing, coming amid rising living costs.

“This is not a new tax but enforcement of an existing one,” said one Nairobi-based creator who received the notice. “Many of us already factor in taxes, but seeing it deducted upfront will feel like a bigger cut.”

KRA has in recent years intensified compliance in the creative sector, with President William Ruto previously highlighting the need to tax digital earnings to support national revenue targets.

The authority’s ongoing rollout of tools to validate income declarations from January 2026 is expected to make under-reporting harder.

Meta rolled out monetisation for Kenyan creators in August 2024, allowing earnings from original videos and Reels. Global Partnerships Lead for Africa, Moon Baz, described the features at launch as a boost for the local creative industry.

The new withholding requirement affects thousands active on Meta’s family of apps, many of whom rely on M-Pesa for payouts following a 2024 agreement facilitated by the government.

Creators are advised to update their tax details on Meta’s platforms and consult KRA for guidance on claiming credits during annual filings. The deducted tax is creditable, not additional, for those who declare full income.