Tech Companies in Kenya Must Pay 1.5% Digital Tax Under New Law

Tech companies operating in Kenya must pay digital services taxes beginning Jan. 1 under a new law signed by President Uhuru Kenyatta.

The East African nation will impose a 1.5% tax on services provided by companies such as Netflix Inc., Uber Technologies Inc., and other online marketplaces and digital service providers. The law was signed by the president on Tuesday.

• Kenya expects the tax to generate about 2 billion shillings ($19 million) in annual revenue, Waihenya Ndirangu, the member of Parliament who sponsored the bill, said last month. Kenya’s 11-month tax collection for the year through May ...