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Kenya Proposes Digital Payment Tax, Critics Fear Adoption Slump

5/27/2026

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Summary

Story summary

Kenya has proposed higher taxes on digital payments and mobile-money services such as M-Pesa.
The proposal comes as sub-Saharan Africa’s tax-to-GDP ratio is about half the OECD average of 30%.
Nearly 90% of jobs in the region remain informal, which the Brookings paper links to weak services, scarce formal jobs and limited finance.
Critics warn that the new digital taxes could slow mobile-money adoption and push transactions back to cash.

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Story summary

Kenya has proposed higher taxes on digital payments and mobile-money services such as M-Pesa.
The proposal comes as sub-Saharan Africa’s tax-to-GDP ratio is about half the OECD average of 30%.
Nearly 90% of jobs in the region remain informal, which the Brookings paper links to weak services, scarce formal jobs and limited finance.
Critics warn that the new digital taxes could slow mobile-money adoption and push transactions back to cash.