Condia Insider: One continent, a thousand tax puzzles
- Kenya's High Court ruled that fintechs are functionally equivalent to banks for VAT exemptions.
- Pesapal was cleared of a KSh76.8 million ($526,000) VAT bill after the ruling.
- Nigeria introduced a ₦50 levy on electronic money transfers exceeding ₦10,000, effective September 2024.
The ruling in Kenya could serve as a catalyst for other African nations to reconsider their tax policies on fintech, potentially leading to a more favorable environment for digital finance. However, the mixed approaches across the continent highlight the need for a unified regulatory framework to foster growth and innovation in the fintech sector.
