Twitch suspends Kenya monetisation over new 16% VAT and digital taxes

Twitch, the American-based video live-streaming platform, has announced the suspension of its monetisation program in Kenya. The decision, communicated directly to users, attributes the move to newly imposed local regulations that have made it difficult—if not unprofitable—for the platform to continue supporting content creators through its Partner and Affiliate programs [1]. Twitch emphasized that this was a “difficult decision,” acknowledging the efforts Kenyan streamers have made in building their online communities.

The platform clarified that while users in Kenya will still be able to access Twitch and continue streaming, the ability to earn income through subscriptions, donations, and other monetisation features will no longer be available. This move effectively halts payout mechanisms for Kenyan streamers who previously relied on Twitch as a primary or supplementary income source [2].

Kenya’s regulatory changes include a 16% Value-Added Tax (VAT) on electronic, internet, and digital marketplace supplies, as well as a 5% withholding tax for residents and 20% for non-residents on digital content monetisation. The government has also introduced a new tax on significant economic presence, set at 3%. Collectively, these measures create a complex and costly environment for non-resident digital platforms [2]. The VAT system, in particular, is a point of contention. For instance, platforms like Facebook and OpenAI are already charging 16% VAT on digital transactions in Kenya, a policy that has been in effect since May 2025.

Kenyan streamers and influencers have expressed disappointment, with many criticising the government for failing to consider the impact of these regulations on digital content creators and the broader online economy. Prominent Kenyan Twitch streamer Sylvia Gathoni—known as “Queen Arrow”—described the situation as a result of “bad governance,” highlighting the government’s perceived negligence toward the digital sector [1].

Twitch’s decision is not an isolated case. Other global tech platforms, including Meta and OpenAI, have also adjusted their operations in response to Kenya’s digital tax policies. This suggests a growing trend where foreign platforms are re-evaluating their presence in markets with increasingly complex and burdensome regulatory frameworks [2].

Analysts argue that Kenya’s current approach to digital taxation lacks clarity and long-term strategic planning. The absence of predictable tax policies, particularly around VAT compliance and economic presence thresholds, creates uncertainty for both platforms and local creators. Critics recommend that the government adopt a more growth-oriented approach, ensuring that taxation supports rather than stifles the digital economy [2].

With Twitch leading the way, other digital platforms may follow suit if regulatory conditions in Kenya continue to shift unpredictably. This could result in further disruptions to Kenya’s digital ecosystem, potentially driving users toward informal digital consumption channels or alternative platforms operating outside the country’s regulatory reach [2].

Source:

[1] title1: Twitch suspends monetisation in Kenya due to local taxes ...

url1: https://technext24.com/2025/08/22/twitch-suspends-monetisation-in-kenya/

[2] title2: Twitch pulls monetization in Kenya, another casualty of ...

url2: https://tech-ish.com/2025/08/21/twitch-switches-off-kenyan-payouts/