Communications Authority of Kenya to tighten online platform regulation

The Communications Authority of Kenya is set to tighten regulatory oversight on online media content providers, who are facing increasing scrutiny from the government over tax and copyright issues. Alex Owiti, Managing Director of Alexander PR, recently discussed the implications of these regulatory changes for consumers on CNBC Africa. The move comes amidst a global trend towards regulating digital platforms and the collection of digital taxes. According to Owiti, the Kenya Revenue Authority introduced the Digital Tax Act with the aim of generating revenue from digital platforms. In the first six months of 2021, they targeted to collect 5 billion Kenyan shillings from these platforms. The rapid growth of digital products and services, particularly during the COVID-19 pandemic, has made digital platforms a lucrative source of tax revenue. With a significant increase in internet and broadband subscriptions in Kenya, the government sees an opportunity to expand its tax base and generate much-needed revenue. In response to these developments, the Communication Authority is planning to enhance its regulatory framework to address tax compliance and copyright issues. The proposed changes aim to create a level playing field for traditional carriers and over-the-top companies, ensuring a fair distribution of revenues. Additionally, the Communication Authority will work closely with the Film Classification Board to monitor and regulate online content to safeguard against inappropriate material and cybercrimes. Public participation is ongoing to gather input on the proposed regulations to ensure they strike a balance between innovation and consumer protection. The regulatory adjustments have not gone unnoticed on the global stage, with the United States closely monitoring the situation. Kenya and the US are engaging in strategic discussions on trade and investment partnerships, with the aim of fostering mutually beneficial relationships. It is essential for both countries to negotiate terms that support economic growth and ensure fair taxation for multinational companies operating in Kenya. The outcome of these negotiations will have far-reaching implications for bilateral trade and investments between the two nations and within the African region as a whole.