Kenya Proposes 3% Tax On Digital Assets

This move is part of Kenya's wider plan to increase tax revenue by $21 billion in the coming fiscal year. Other proposed measures include increased taxes on betting, rental income, and fuel.

The proposed tax is still subject to approval by Kenya's parliament; but if it’s passed, it could have significant implications for the country's crypto industry. As with any new tax, it will be important for policymakers to strike a balance between raising revenue and encouraging growth and investment in the sector. Nikhil Hira, partner at Nairobi-based advisory firm Kody Africa, stated, “This will put further burden on Kenyans, who are already facing difficult times with the high inflation rate impacting the cost of living. With increased taxation and other levies, disposable income is going to reduce for the majority of the population.”