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Twitch has Suspended Monetisation in Kenya Due to Local Taxes and Levies
Twitch has suspended monetisation in Kenya. This means that many Kenyan streamers and content creators can no longer earn money from their Twitch channels. The company said the reason for this is because of local taxes and levies that have made paying creators tricky and not very profitable.
In a message to its users in Kenya, Twitch explained that new rules in the country have made it hard for them to keep offering monetisation options. These rules include taxes like VAT and other digital levies that make it expensive for Twitch to continue paying streamers. Because of this, Twitch has had to make the tough decision to suspend monetisation in Kenya.
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Not just that, Twitch also announced that its Partner and Affiliate programs will be paused in Kenya. These programs are important because they allow creators to earn money by building their Twitch communities. Twitch called this a difficult decision and said they are very sorry for the impact it will have on Kenyan streamers.
Even though Twitch monetisation in Kenya suspended, the platform itself will still be available. This means people can continue to watch streams and create content, but they won’t be able to turn their time and effort into money on Twitch anymore.
Many Kenyan streamers and influencers feel sad and frustrated about this. Some blame the government, led by President William Ruto, for the tax rules that caused this to happen. One popular Kenyan streamer, Sylvia Gathoni, also known as “Queen Arrow,” voiced her unhappiness. She said this situation is a result of “bad governance.” Queen Arrow is well-known as the first Kenyan and East African woman signed to a professional esports team, as well as a Red Bull athlete and Forbes 30 under 30 alumna.
Twitch, which started in 2011, is an American company that lets people live stream video games, music, creative work, and “in real life” activities. It has a big following in Africa, especially in countries like Nigeria and South Africa. But now, with Twitch monetisation in Kenya suspended, many creators are worried about their future earnings.
Why did Twitch stop monetisation in Kenya? The main problem is the new local taxes like the 16% VAT on digital services and a 5% or 20% withholding tax on digital earnings, depending on whether the content creator lives in Kenya or not. The government also replaced the old Digital Service Tax with a 3% economic presence tax. All these taxes combined have made it hard for Twitch to keep monetisation running in Kenya.
For example, if someone buys adverts on Facebook or subscribes to online tools like ChatGPT in Kenya, they have to pay this extra 16% VAT. Even internet data costs more because of new taxes lawmakers wanted to raise. All these extra costs make it harder for digital platforms and users to keep spending money or earning money online.
Some Kenyans say these taxes are hurting people’s daily lives and businesses. Many might start changing their billing addresses to other countries or stop paying for online subscriptions and ads altogether.
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Twitch is the first major digital platform to suspend monetisation in Kenya because of these taxes. But there are fears that other platforms might also do the same soon if the government does not reconsider the digital levies.
Twitch has suspended monetisation in Kenya due to local taxes and levies making it too difficult and costly for the company to pay streamers. The Twitch platform remains open, but Kenyan creators can no longer earn money from their content. This has disappointed many in Kenya who use Twitch to grow their online communities and make some income. The situation shows the problems the new tax rules have created for digital businesses and the people who rely on them. For now, Twitch monetisation in Kenya suspended is a big blow to streamers, and many hope the government will find a better way to support digital creators soon.
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