Meta to deduct 5 per cent tax on Kenyan creators’ earnings in 2026
The company said the withholding tax will be automatically deducted from all payouts and reflected in monthly remittance statements.
Kenyan content creators will see 5 per cent of their earnings withheld by Meta from January 1, 2026, following recent updates to local tax regulations.
In a notice sent to creators, Meta explained that the move is part of compliance with Kenya Revenue Authority (KRA) rules requiring all businesses to deduct and remit taxes for payments to residents.
More To Read
- National Treasury says weak revenue, high debt repayments straining Kenya’s budget
- Report warns withholding tax risks pushing digital traders to informal platforms
- Meta unveils new tool to protect Reels creators from content theft
- Government shifts cargo clearance to Nairobi, Naivasha in bid to decongest Mombasa Port
- KRA’s official X account hacked, public warned against fraudulent posts
- High Court rules in favour of KRA in Sh1.1 billion tax dispute, orders fresh tribunal hearing
The company said the withholding tax will be automatically deducted from all payouts and reflected in monthly remittance statements.
“Starting January 1, 2026, all payments to creators located in Kenya will be subject to a 5 per cent withholding tax as mandated by Kenyan law,” the notice stated. Meta confirmed that the net amount after tax will continue to be credited to creators’ accounts.
This step is part of government efforts to strengthen tax collection in the fast-growing digital economy, where influencer marketing, online content, and advertising are becoming major revenue sources.
Thousands of Kenyan creators earning through Facebook, Instagram, and other Meta monetisation programmes are expected to be impacted.
Creators will be required to report the withheld amount when filing annual returns to KRA.
Meta noted that all payments will be subject to the 5 per cent creator withholding tax in addition to other applicable levies.
Withholding tax is a system designed to collect tax at the point of payment rather than relying solely on annual returns. It applies to various payments, including professional fees, royalties, dividends, interest, and now, digital content revenue.
The approach ensures compliance and allows the government to collect revenue upfront.
Meta also highlighted efforts to support Kenyan creators’ earning potential.
In August 2024, it launched two monetisation features: In-Stream Ads on Facebook and Ads on Facebook Reels. These programmes allow creators to earn money by sharing original videos and engaging their communities.
Moon Baz, Meta’s Global Partnerships Lead for Africa, the Middle East, and Türkiye, said the tools aim to empower the country’s creative industry.
“We are inspired every day by African creators telling their stories and building connections,” she said.
“These features enable creators to monetise their content, grow their businesses, and make Meta the hub for creative talent.”
In-Stream Ads include pre-roll, mid-roll, and post-roll formats, along with image ads displayed alongside videos.
Ads on Facebook Reels will be seamlessly integrated into original content, and payouts will be determined by the performance of each reel.
The changes are expected to professionalise content creation while ensuring adherence to Kenyan tax law.
Top Stories Today
