KEPSA ICT Sector board led by the Vice Chair, Mr. Ben Roberts, met with the Deputy Secretary in the Ministry of ICT, Ms. Juliana Yiapan and other policy counterparts on 26th November 2019 at Teleposta Towers. The purpose of the meeting was for the KEPSA team to apprise the Ministry on the Baseline report of taxing the Digital economy marketplace.
In his remarks, Mr. Roberts introduced the report which is a result of the scoping phase in a broader effort being undertaken by a joint team drawn from Strathmore University Business School (SBS) and KEPSA to define the Digital Marketplace in Kenya. He said that the report is an effort of representatives from each organization as captured in the Concept Notes from September 2019. He added that this would inform the structure of a potential partnership between SBS, KEPSA and other actors drawn from Industry, Academia and Government starting 2019 to jointly define the policy landscape governing the Digital Economy in Kenya. However, the contents of the report do not represent the official position of either organization but rather a pre-contractual perspective to spur thinking among various actors be formalized through a contract among the parties.
The study applies two frameworks (the Innovative Governance framework and the Digital Tax Policy framework) through a desktop review of existing literature, multiple stakeholder interviews and a set of meetings. The findings are categorized using a 3-dimensional framework that yields an 8-part model as a basis for taxation of the digital marketplace. The model takes into account three key factors (sovereignty, transaction and platform – STP) to answer questions (who, what, how, why, where and when) on taxation of the digital marketplace.
Ms. Yiapan acknowledged the report and assured KEPSA that they will support it all the way. She appreciated the fact that the conversation on the digital economy will not only enable small, medium enterprises to grow but grow the economy by attracting foreign investment.