NAIROBI, Kenya — Meta has formally notified Kenyan content creators that a new tax deduction will be applied to all earnings payouts starting January 1, 2026. This measure is being implemented to comply with recent changes in Kenya’s local tax legislation targeting the digital economy.
In a direct communication sent to creators, Meta confirmed that Kenyan tax regulations now mandate that businesses deduct and remit withholding tax to the Kenya Revenue Authority (KRA) for payments made to creators based in the country.
As a result, Meta will begin deducting a 5 per cent withholding tax from all payments issued.
“Starting 1 Jan 2026, Kenya Tax law requires all businesses to deduct and remit taxes to the Kenya Revenue Authority (KRA) for any payments made to creators located in Kenya,” the notice stated.
“As a result, Meta will deduct 5% withholding tax from all payments made to you; and the same would also be reflected in the remittance advice issued to you by Meta.”
The company specified that these deductions will be detailed in the monthly remittance statements provided to creators. The net amount, after the tax deduction is applied, will then be transferred to their respective accounts.
“Beginning December 2025, all payments made will be subject to 5% creator withholding tax (in addition to any other withholding taxes applicable) and the net amount after tax will be paid to you,” Meta said.
Alignment with tax compliance efforts
This move aligns Meta with the Kenyan government’s efforts to enhance compliance and broaden the tax base within the burgeoning digital economy, which encompasses online content creation, influencer marketing, and digital advertising.
The change is expected to impact thousands of Kenyan creators earning revenue through Meta’s monetization programs across platforms like Facebook and Instagram.
Creators will now be responsible for accounting for the deducted tax when filing their annual returns with the KRA.
Withholding tax is a mandatory levy requiring organizations making specific payments, such as professional fees, dividends, and now payments to digital creators, to deduct a percentage at the source and remit it directly to the KRA. This system is designed to ensure the government collects revenue upfront.
Recent monetization expansion
The announcement follows Meta’s roll-out of two key monetization features for Kenyan creators in August 2024: In-Stream Ads on Facebook and Facebook Ads on Reels. These features were intended to allow creators to earn income by producing original video content.
Moon Baz, Meta’s Global Partnerships Lead for Africa, Middle East, and Türkiye, previously stated that these features would empower the country’s creative business.
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“Every day, we’re inspired by the incredible African creators who use Facebook to tell their stories, connect with others, and bring people together.”
“This expansion will empower eligible creators in Kenya’s vibrant creative industry to earn money, setting a high bar for creativity worldwide and making Meta’s family of apps the one-stop-shop for all creators,” Baz said.
In-Stream Ads can include pre-roll, mid-roll, image, and post-roll ads, while Ads on Facebook Reels pay creators based on the performance of their original short-form videos.
