Kenya's Facebook Creators to Pay 5% Tax to KRA from December

Kenyan content creators generating income via Facebook and other Meta services will start remitting a 5% tax deduction to the Kenya Revenue ...

Kenyan content creators generating income via Facebook and other Meta services will start remitting a 5% tax deduction to the Kenya Revenue Authority (KRA) from December 2025.

This comes after a policy change announced by Meta on Thursday, November 20.

Facebook creators will be required to pay withholding tax

In a message directed at content creators, Meta mentioned that this change comes as a result of updates to Kenyan tax regulations, which mandate businesses to withhold and pay taxes on payments given to creators based in Kenya.

The company announced that it will start deducting 5% from all payments made to creators, with these reductions shown in the payment statements given to each creator.

"We want to let you know about a significant change that will impact your creator payments from Meta Platforms Ireland Limited. Beginning on 1 January 2025, Kenyan tax regulations require all businesses to withhold and pay taxes to the Kenya Revenue Authority (KRA) for any payments given to creators based in Kenya. Consequently, Meta will withhold 5% tax from all payments made to you; this will also appear in the payment confirmation provided by Meta," the notice stated.

"Starting from December 2025, all transactions will incur a 5% creator withholding tax (alongside any other applicable withholding taxes), with the remaining amount after the tax deduction being transferred to you," the notice stated.

The company stated that creators will only receive the amount remaining after taxes have been deducted, and these reductions will also be reflected in official tax documents available via the government's online platform.

What should creators do?

The update is anticipated to affect thousands of Kenyan content creators who generate income through Meta initiatives, including those earning from In-Stream Ads and Ads on Facebook Reels.

Meta said,

• Ensure that your company's Tax Identification Number and registration information in your Meta account are accurate and current.
• Ensure that your relevant information is current on the Payouts Page:
• Business name Address for registration Tax Identification Number

What is withholding tax?

As per KRA, income tax is withheld at the source for earnings like professional fees, royalties, dividends, and recently, creator income.

"This is a tax collection approach where an individual or entity responsible for paying specific incomes withholds the tax from the payments made to recipients and subsequently submits the withheld tax to the Commissioner of the Domestic Taxes Department within 5 working days of the deduction," KRA clarifies.

The amount of tax withheld differs based on the kind of income provided and the payee's residency status, and it is a component of the government's larger plan to enhance adherence within the digital economy.

The industry has expanded rapidly in recent years, driven by influencer marketing, digital ads, and the quick growth of video-based content.

Kenya's online business environment has developed into a major source of income, leading officials to implement more transparent tax regulations for platforms that feature paid content.

How do people in Kenya make money through Facebook?

In August 2024, Meta introduced in-stream advertisements and Facebook Reels ads in Kenya, enabling qualified creators to begin generating income from their content.

Revenue generation proved to be a significant uplift for the nation's digital creative sector.

Meta stated that creators need to be 18 years or older, meet specific follower and view requirements, adhere to community guidelines, and reach a minimum of 1,000 views before a video becomes eligible for earnings.