Twitch suspends monetisation in Kenya due to local taxes and levies

Twitch suspends monetisation in Kenya due to local taxes and levies


American-based video streaming platform Twitch has suspended its monetisation program in Kenya. According to the company, the development is attributed to local regulations that now make paying content creators difficult and probably unprofitable. 

In a message to Kenyan users, Twitch explained that recently imposed regulations in the East African country have restricted its ability to keep up with monetisation. The platform stressed its disappointment and highlighted the difficulty in reaching such a decision.

After careful consideration, we’ve made the difficult decision to suspend monetisation in Kenya. Recently imposed regulations have restricted our ability to continue offering Twitch monetisation opportunities to streamers in Kenya,” Twitch said.

Twitch added that its Partner and Affiliate programs will also be suspended. The initiatives are part of a community social responsibility that the platform offers in its operating regions. Due to the imposed local regulations, the company is suspending the programs in the country.

Twitch's dashboard
Twitch’s dashboard

Meanwhile, Twitch explained that the platform will still be available for use in the country. However, the ability to create content and earn will no longer be available.

We understand that this is extremely disappointing news, as many Kenyan streamers have invested a lot of energy in building and growing communities on Twitch. While you will no longer be able to monetise your Twitch channels, you will still be able to continue streaming and viewing should you choose to,” it added.

Kenyan streamers, influencers and other individuals have expressed their disappointment, blaming President William Ruto’s administration for the local regulation implementation. Many felt the government was negligent of the effects on residents.

A popular Kenyan Twitch streamer, Sylvia Gathoni, known as “Queen Arrow”, berated the development, raising questions around the government’s role in the turnaround. Reacting to the news, Queen Arrow, who is also the first Kenyan and East African woman signed to a pro esports team, simply said: “Welp. This is what bad governance gets us.”

Aside from being a popular Twitch streamer, Queen Arrow is also a ‘Red Bull’ athlete, a law graduate and a Forbes 30 under 30 alumna.

President William Ruto

Twitch, introduced in June 2011, is an American-based video live-streaming service popular in video games, including broadcasts of esports competitions. It offers music broadcasts, creative content, and “in real life” streams. Twitch is engaged and available in many parts of Africa, including Nigeria and South Africa.

Also Read: Google debuts AI mode in Search for Nigeria, Kenya and SA.

Why Twitch stopped monetisation in Kenya 

While Twitch cited “recent imposed regulations” as the main reason for its suspension of monetisation in Kenya, digital levies and the new value-added tax (VAT) system have been pushing non-resident platforms to the wall. With this, Kenyan digital levies have the potential to suppress growth than the expected revenue generation it was originally designed for. 

In the country’s local regulations, non-resident platforms are required to register for VAT on electronic, internet and digital marketplace supplies at 16%. Also, Kenya subjects digital content monetisation to withholding tax at 5% for residents and 20% for non-residents.

Moreover, while the government looks to restructure the Finance Tax and the old Digital Service Tax, it has replaced it with a significant economic presence tax, now set at 3%. While these tax reforms pose a livelihood and survival threat to both citizens and visitors, they have a greater impact on digital platforms. 

Kenya on top countries chart as tech companies layoff 211,033 employees in 2024Kenya on top countries chart as tech companies layoff 211,033 employees in 2024

Notably, at the apex of the issue is the VAT system. 

If a Facebook user buys an ad in Kenya, the platform adds 16% VAT to the bill. Also,  subscription to AI tools like ChatGPT, OpenAI charges 16% VAT in Kenya, effective since May 2025. Enjoying internet data subscription also costs more with excise duty, which Kenyan lawmakers tried to raise in 2024 to 15%. 

For resident and digital platform operators in the East African country, this is a threat to daily life and operations. Within this, many Kenyans are threatening to retreat to either changing billing regions or simply stop spending altogether on subscriptions and ads.

While Twitch is the first to stop monetisation programs, many non-resident digital platforms might follow suit in the weeks to come.





Source: Technext24

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