Popular American video streaming service Twitch has announced the suspension of its monetisation features in Kenya, citing recent governmental tax policies that have made it challenging to support content creators in the country.
Twitch conveyed to its Kenyan audience that freshly introduced regulations are restricting its ability to provide earning opportunities on its platform. The streaming giant described the move as a reluctant but necessary response to the local fiscal landscape.
“Following extensive evaluation, we have decided to pause all monetisation options for streamers in Kenya due to these regulatory changes,” Twitch stated. This includes halting both Partner and Affiliate earning mechanisms, which are essential components of the company’s community engagement efforts globally.
Despite these setbacks, the platform will remain accessible for users in Kenya, allowing them to continue streaming and interacting with content. However, creators will no longer be able to generate income through Twitch channels, a blow to many who have invested significant time and passion in building their audiences.
Local influencers and content producers have expressed frustration, attributing the situation to government policy under President William Ruto’s administration. They argue that the new rules disregard the implications for digital creators and their livelihoods.
Sylvia Gathoni, famously known as “Queen Arrow”, a trailblazer in esports and a leading Kenyan Twitch personality, voiced her disappointment;
This is exactly what poor governance results in. This isn’t just about Twitch; it’s about how the government’s approach impacts the entire creative ecosystem. We need policies that support innovation rather than stifle it
Twitch, established in 2011, is well known for live broadcasts of gaming and esports events as well as music and lifestyle streams.
The challenge stems largely from Kenya’s enforcement of digital levies and a value-added tax (VAT) of 16% on electronic services supplied by foreign companies. Non-resident digital entities also face a withholding tax of 20%, adding to the financial strain. Furthermore, recent changes have introduced a new economic presence tax at 3%, replacing earlier taxation frameworks.
Industry observers note that such fiscal policies risk hindering digital sector growth and could lead to reductions in investment or service availability.
Similar difficulties have surfaced with companies like Facebook and AI service providers, which now apply VAT charges on ads and subscriptions specifically for Kenyan customers. The resulting increase in operational costs is already causing some users to reconsider their spending habits, a worrying trend for the digital economy.
Analysts warn that other foreign digital platforms might soon follow Twitch’s example, scaling back or suspending monetisation ventures due to these mounting regulatory pressures.
Stakeholders await potential reforms that balance government revenue goals with the needs of an emerging digital economy that empowers millions.
