A report by the United Nations on Trade and Development (UNTD) shows that Kenya is among the five top countries in Africa with a lead in the digital economy.
According to the report, Kenya, Egypt, Nigeria and South Africa took the lead in the digital economy controlling 60% of Africa’s digital and are ahead in utilizing data and various platforms to drive digital entrepreneurship.
Communications Authority of Kenya (CA), indicates that the country’s digital entrepreneurship industry is estimated to be worth more than Ksh4.3 billion.
The top four were trailed by Ghana, Morocco, Senegal, Tunisia, Uganda and Tanzania which gobbled up 20% with the remaining 44 countries pegging on another 20%.
However, Kenya is likely to lag behind since the government mulls introducing new taxation on mobile taxation and internet usage, and this would be a counterproductive and will reduce active internet users, a move the UN warned that may derail the country’s digital gain
In addition, taxation may suppress growing start-ups and online businesses leading to a decline in digital economic activity.
Countries in discussion to introduce interim and permanent measures to tax the digital economy include Kenya, Uganda, Tanzania, and Zambia.
However, the report cited unequal wealth distribution as digital economies concentrate wealth on a small number of individuals, companies, and countries.