Kenya targets Visa, Mastercard, Microsoft in sweeping digital tax overhaul

Kenya plans to widen taxes on digital payments and software services, pulling firms like Visa, Mastercard , and Microsoft deeper into its revenue net as the government seeks new revenue source.
The proposal, contained in the proposed Finance Bill 2026 , expands the definition of “royalty” under the Income Tax Act to cover payment card schemes, digital platforms, and software-related services that underpin Kenya’s banking and startup economy.
The move could raise the cost of cross-border technology services in one of Africa’s largest digital economies, with implications for banks, fintechs, and startups that rely heavily on foreign cloud infrastructure, payment rails, and enterprise ...