Sharp Daily
No Result
View All Result
Friday, July 11, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Opinion

Impact of digital freelance work on Kenya’s economy and revenue

Faith Ndunda by Faith Ndunda
February 4, 2025
in Opinion
Reading Time: 2 mins read

Kenya’s digital freelance economy, which includes online writing, transcription, forex trading, cryptocurrency trading, and Non-Fungible Tokens (NFTs), has grown rapidly in recent years. While it has created new opportunities for individuals, its unregulated nature presents challenges for both revenue collection and economic oversight.

Forex trading has become increasingly popular in Kenya, with an estimation of over 100,000 traders according to Trade Forex Kenya.  Forex trading contributes to the economy by providing individuals with alternative income sources and promoting financial literacy. Unlike other digital freelance work in Kenya, forex trading is legal in Kenya and is regulated by the Capital Markets Authority (CMA), with 12 licensed Forex brokers in Kenya. Gains or losses from forex trading are viewed as ordinary income and therefore taxed as ordinary income. There are unregulated forex trading sites which pose challenges in revenue collection.

Crypto trading is increasingly becoming popular in Kenya. According to Chainalysis Kenya ranks 28th globally in terms of cryptocurrency adoption with an index score of 0.1. The Central Bank of Kenya (CBK) has been working to regulate this market to ensure consumer protection and financial stability. Crypto trading offers opportunities for wealth creation and financial inclusion, but it also presents challenges for tax authorities, as the anonymity of transactions makes it difficult to monitor and tax effectively.

The online writing and transcription markets have opened up new opportunities for Kenyan freelancers. Platforms like Upwork and Fiverr allow writers and transcribers to offer their services to a global audience. This sector contributes to the economy by providing employment and income for many Kenyans. However, it also raises questions about fair compensation and working conditions for freelancers.

RELATEDPOSTS

No Content Available

NFTs have gained popularity in Kenya, particularly among artists and content creators. These digital assets allow creators to monetize their work in new ways, providing a source of income that was previously unavailable. NFTs also contribute to the economy by promoting innovation and creativity. However, the lack of regulation and the volatility of the NFT market pose risks for investors and creators alike.

The digital freelance economy presents both opportunities and challenges for Kenya’s revenue collection efforts. It provides new sources of income and employment which can boost economic growth. However, their informal nature makes them difficult to regulate. Many traders use VPNs to maintain anonymity and evade potential regulatory scrutiny. This decentralized system limits the Kenya Revenue Authority’s (KRA) ability to monitor transactions and collect taxes. In December 2024, the digital tax reform was amended with a withholding tax of 5.0% on residents and 20.0% on non-residents on income earned from a digital marketplace or platform to address revenue collection for income from digital work.

Previous Post

Navigating mortgage options in Kenya: A comprehensive guide

Next Post

Unlocking Kenya’s potential: Why capital markets matter

Faith Ndunda

Faith Ndunda

Related Posts

Business and Finance Concept - Coin, Currency, Financial Item, Graph,
Opinion

Opinion: Why lower taxes may be Kenya’s only escape route

July 10, 2025
Opinion

Privatization in Kenya: A new dawn for capital markets and fiscal stability

July 10, 2025
Economy

What happened to president Ruto’s economic dream?

June 27, 2025
Opinion

Opinion: Populism feeds votes, not growth

June 27, 2025
Opinion

Unlocking the power of REITs: A path for retail investors

June 26, 2025
Opinion

How Kenyan banks can bridge the cybersecurity talent gap

June 25, 2025

LATEST STORIES

Why Employers Should Prioritize Pensions Over One-Time Gratuity Payments

July 10, 2025
Business and Finance Concept - Coin, Currency, Financial Item, Graph,

Opinion: Why lower taxes may be Kenya’s only escape route

July 10, 2025

Nvidia becomes the first company globally to hit USD 4.0 trillion market value

July 10, 2025

Privatization in Kenya: A new dawn for capital markets and fiscal stability

July 10, 2025

How Kenya is future-proofing its economy against illicit finance

July 9, 2025

The importance of Investment Policy Statements (IPS) for pension schemes in Kenya

July 4, 2025

Understanding Life Cover as an Additional Benefit in Retirement Benefit Schemes

July 4, 2025

Del Monte foods files for bankruptcy in USA

July 3, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024