

2025 is now on its sunset; I reflect:
The Startup Genome Global Startup Ecosystem Report (GSER) 2024/2025 ranks Nairobi as the 2nd best overall and No. 1 best in Sub-Saharan African ecosystem in Fintech, Ecommerce and AgriTech—core digital/ICT services.
The Africa Big Deal Startup Funding Reports (2024 data, published in 2025)— Kenyan startups raised $638 million in 2024 (29% of Africa's total), making Kenya #1 in Africa for startup funding for the second year running—.
The pendulum ⚖️
Recently, I had the pleasure to represent Government and my PS in a public policy forum that featured a rich panel of tax and policy experts drawn from KRA(KENYA REVENUE AUTHORITY), Ministry of Investments,Trade and Industry, MoICT and top tax legal firm ALN Kenya | Anjarwalla & Khanna.
The session, moderated by Mr. Sandeep Main of KPMG took stock of the impact the Significant Economic Presence (SEP) Tax, introduced through the Tax Laws (Amendment) Act 2024, has had on Kenya's ICT ecosystem.
Essentially this legislation and the ensuing statutory instrument intend to achieve three things:
1. Level the playing field for both homegrown digital market players and non-resident digital companies with significant economic influence in Kenya. This secures more backs, fairly so, to carry along the sector growth burden.
2. From an investment standpoint, the legislation provides a revenue base for public infrastructure capital that will attract private capital to enable Kenya achieve her digital footprint priority— case in point: the National Fibre Optic Backbone Infrastructure (NOFBI), 300+ digital hubs and digitising/digitalising Kenya's trade, security, food and healthcare systems.
3. Offer Public Sector capacity to lay legal groundwork for emerging technologies (5G+, AI, Blockchain etc.)
This then provides us with there opportunities and work really, is cut out for us:
1. We need to collaborate in profiling, attracting and securing in-country residency for these enterprises that have subtabtantial business activity in the ICT sector in Kenya but bear no permanent establishment in Kenya and in Africa generally. Kenya is Africa's Silicone Savanna!
2. Holistically and deeply review any adverse effects SEPT may potentially have on domestic intermediary operations and apply stakeholder led, thoughtful remedies there in— Either through Tax Laws Amendment Bill 2026 or the 26/27 Finance Bill.
3. Lastly, as Public Sector, we must make it a priority to communicate effectively and engage stakeholders widely on the good intentions and progress being made—Especially in legislative agendas that affect key priority sectors— RIA/Ss are important and mandatory. They best highlight detailed cost benefit analysis (CBAs) and regulatory ramifications (prose) prior to public utilisilation.
End of reflection. Happy holidays 🏖!
18 Décembre 2025 à 17h54
Voir sur LinkedIn →