Omwansa : "My 'Dad' (Ruto) is a big afan if Kenya and Loves Kenya, He has worked the very best For the people of Kenya.
Morara kebaso: "If your "Dad" dearly loves Kenya why is your Mother living in Slums?" 💀
Kenya has introduced a new 25% tax on software subscriptions.
One of the principles of a good tax system is simplicity.
Taxes should be easy to understand. Easy to comply with. And inexpensive to administer.
Finance Act 2026 has introduced new rules for software subscriptions.
• The Act now classifies payments for software licences and software subscriptions as royalties.
- As a result, every time you pay an overseas software company, you are now required to withhold 20% tax and remit it to KRA.
- Then pay the software company the remaining 80%.
For example.
Suppose you pay Google, Amazon or Microsoft USD 1,000 every year for software subscriptions.
The law says:
• Confiscate 20%, USD 200.
• Remit it to KRA.
Then pay the software company USD 800.
There is only one problem, however.
- Software subscriptions are paid either in full or not at all.
Google does not care that you have complied with the Kenyan tax laws. You either pay them 1,000 USD or go home.
So what happens to continue using the software and keep KRA happy?
- You pay Google their full USD 1,000.
In doing so, KRA treats the USD 1,000 as the net amount after withholding tax. That means the original invoice is deemed to have been USD 1,250. How?
Ulikua unaangalia mwalimu na ruler ukiuliza hesabu ya cross multiplication itakusaidia aje maishani. Ona Sasa.
If USD 1,000 = 80%,
Then 100% = USD 1,250.
The withholding tax therefore becomes USD 250.
Meaning:
• Google gets their full USD 1,000.
• Then you go back to your pocket to pay KRA USD 250.
Total software cost = USD 1,250.
In effect, the law has quietly introduced a 25% tax on many software subscriptions.
Even if a small taxpayer genuinely wanted to comply, how exactly are they supposed to comply when the giant software company insists on being paid in full?
This is the new law. Adjust accordingly.
@WashiraX Do these law makers ever read the nonsense they draft up. I have read three lines and can barely understand.
Also do we not remit the digital tax? What is this double taxation.
Protests have now become a money making machine for security organs, because every small public gathering is turned into a national security operation with meetings, allowances, procurement, deployment budgets and fresh excuses to buy more equipment.
I hear some of them were in a strategy meeting yesterday where heavy allowances were allegedly paid, and you can now see why maandamano has become very sweet for senior police officials and Interior Ministry people.
Even if three Kenyans stand outside Parliament and blow a whistle, teargas will be thrown, bosses will call a meeting to assess the situation, then someone will propose more cameras, more vehicles, more fuel, more allowances and more security spending.
This is no longer just public order management, it is maandamano laundering, where fear is created, chaos is exaggerated, taxpayers pay, suppliers eat, bosses approve, and ordinary police officers are left in the streets looking like the face of a business run by people in offices.
I just love how Kenyans monetize everything, because even protests have now become a tender line, an allowance line, a procurement line and a very convenient excuse for some people to get rich while pretending to manage national security.
This Bill has been in Parliament since July 2025. Nobody in govt has bothered to inform Kenyans on why they want to enact it, implications and benefits if any. Kenyans are asking questions. Now they are trying to convince us it's good. No clauses, just ''It's good. Accept it.''
A Broke Government Never Falls Alone
Kenyans are still laughing, forwarding memes, arguing about tribes, insulting each other on X and pretending that a debt crisis is something that will only visit State House, Treasury and Parliament like a polite visitor with an appointment.
That is the stupidity broke governments love.
When a country enters a debt crisis, the government does not go down alone, because it goes down with the public, drags citizens by the neck, empties pockets, shakes banks, touches pensions, kills credit, weakens the currency and turns ordinary people into guarantors for money they never ate.
Ghana was here and citizens felt it through domestic debt exchanges, banks took pain, pension funds entered the conversation and the same public that was told borrowing was for development found itself carrying the bill.
Sri Lanka was here and citizens did not debate theory, because fuel vanished, medicine became a problem, power cuts became life, taxes went up and ordinary people paid for a debt mess cooked by leaders.
Zambia was here and the country spent years inside restructuring, IMF conditions, fiscal discipline speeches and the usual recovery language that always sounds clean until it lands on families, businesses and workers.
Argentina was here and people woke up to find that bank deposits were no longer freely theirs, because when the state panicked, citizens discovered that money inside banks can become a hostage.
Lebanon was here and depositors stared at bank balances they could not freely touch, watched the currency get crushed and learned the hard way that when government and banks rot together, citizens become the burial committee.
That is why Kenyans should stop asking why Kenya has not defaulted and start asking who is being prepared to carry the default when the music stops.
The anus cannot be stitched to stop diarrhoea.
A broke state cannot borrow recklessly, tax everything, sell public assets, starve SMEs through banks, raid workers through deductions, eye SACCO savings and then pretend the public will remain safe when the debt fire finally enters the house.
The public is the guarantor.
Not Parliament.
Not Treasury.
Not State House.
Not the tender billionaires.
Not the budget magicians.
It is the teacher with SACCO savings, the nurse with a payslip loan, the police officer with deductions, the mama mboga paying mobile money charges, the farmer waiting for credit, the boda rider paying fuel taxes and the small trader already blacklisted by banks.
Kenyans are not angry enough because many still think default means government fails, yet history says default means government transfers pain to citizens and then hires economists to give the theft a clean name.
After SACCOs, they will come for banks, M-Pesa, pensions, deposits, transaction flows and every private pool of money still breathing outside Treasury’s hands.
The government will not go down alone.
It will go down with you.
When government starts pulling SACCO money into infrastructure, small businesses will feel the pain first, because SACCOs are the last credit corner left for ordinary Kenyans who were already locked out, ignored or punished by banks after government started competing through internal debt.
Kenyans who lived through Kibaki’s time remember an economy where businesses were breathing, banks were chasing customers with tents outside branches, and ordinary people were being begged to take loans.
Let Ruto accept he has lost it, we default and he resigns then we investigate these odious debts.
No matter the tricks, the diarrhoea will explode.