Kenya Introduces a 3% Tax on Crypto Transactions
Kenyan President William Ruto signed into law on June 26 the 2023 Finance Bill, a package that most notably included the implementation of a 3% tax on all transactions involving cryptocurrencies.
Through TechCabal, the Kenyan government communicated their objective of using the tax to stimulate the local economy and reduce its dependency on external loans.
President Ruto has a grand vision of tripling the country’s revenue up to a total of 5 trillion shillings ($36.7 billion) in five years.
However, the Blockchain Association of Kenya (BAK) responded to the decision with discontent, claiming that it could “stifle innovation and hinder the growth of sectors in the industry,” due to the digital currency’s volatile nature.
A United Nations report placed Kenya as the fifth most populous nation in terms of global cryptocurrency adoption, with 8.5% of its citizens having used it.
Furthermore, Business Daily Africa conducted a survey and found that 90% of Kenyans objected to the law. In a similar move, the Swiss canton of Zug raised the minimum threshold for taxes paid in bitcoin and Ethereum to $1.67 million on May 15.
