Spotify Launches in Kenya Amid New Digital Service Tax
New York Stock exchange-listed audio streaming subscription service Spotify has announced that it is now available in more than 80 emerging countries including Ghana, Kenya, Nigeria, Tanzania and Uganda.
Spotify has a worldwide community of more than 345 million monthly active listeners.
“By bringing in a best in class product and a localized experience made for Africa, we will contribute to boosting the growth of the local streaming ecosystem,” said Phiona Okumu, Spotify Head of Music Sub-Saharan Africa.
The popular audio streaming subscription service has launched a few weeks after the Kenyan Government moved to implement the Digital Service Tax.
The Income Tax (Digital Service Tax) Regulations 2020 came into effect on the 2nd January 2021 and applies to such digital services as subscription-based media such as films, music, podcasts, news and magazines. The new tax will attract the 1.5% Digital Service Tax on gross transaction value.
Over-the-top streaming television shows, online ticket sales and any form of digital content are among services that will be subject to this tax.
“Launching in these new markets is a key next step to fulfilling our ongoing commitment to building a truly borderless audio ecosystem,” said Alex Norström, Chief Freemium Business Officer of Spotify.