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Times Tower in Nairobi, headquarters of the Kenya Revenue Authority
SEP taxSignificant Economic Presence TaxKRAdigital tax KenyaFinance Act 2025e-commerce taxnon-resident taxationAI tax Kenyadigital marketplacescross-border tax

Significant Economic Presence Tax in Kenya 2026: How the 3% SEP Levy Replaced the Digital Service Tax and What It Means for Cross-Border Platforms

The Significant Economic Presence (SEP) Tax replaced Kenya's Digital Service Tax from 27 December 2024 and was widened by the Finance Act, 2025. At an effective rate of 3 per cent on gross Kenyan earnings, it now applies to nearly all non-resident digital, AI and data-monetisation services consumed in Kenya.

May 24, 2026 8 min read
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