🚖 Uber and Bolt Raise Concerns: Ride-hailing giants Uber and Bolt have expressed serious concerns over Kenya's proposed 6% Significant Economic Presence Tax (SEP), highlighting the potential unsustainability of their operations if the tax is implemented.

📉 Impact on Earnings: Bolt's public policy manager, George Abasy, emphasized that the tax would result in a 22% effective rate on gross turnover for non-resident digital companies, ignoring operating costs. This significant increase could push earnings from lower-cost taxi rides into a net loss, according to Bolt's tax manager, Celia Kuria.

📊 Economic Ramifications: The proposed SEP tax aims to levy a 6% charge on the gross turnover of all non-resident companies. Representatives from Uber and Bolt warned parliament that similar taxes had previously driven foreign firms out of Nigeria and could have the same effect in Kenya, potentially leading to a collapse of the ride-hailing sector and mass job losses.

💬 Calls for Rejection: Uber and Bolt have urged the Kenyan National Assembly to reject the SEP proposal, citing the potential negative impact on their operations, driver earnings, and overall market sustainability.

🌍 Broader Industry Opposition: The Kenya Association of Manufacturers (KAM) has also voiced opposition to the SEP and other proposed tax increases, urging lawmakers to reconsider these measures to avoid stifling economic activity.

Highlights:

• Proposed Tax: 6% SEP on gross turnover for non-resident digital companies.
• Effective Tax Rate: Could rise to 22% on gross turnover.
• Potential Impact: Increased operational costs, potential market exits, mass job losses.
• Industry Response: Uber, Bolt, and KAM oppose the tax, urging rejection.
• Legislative Context: Part of President Ruto’s administration's efforts to increase revenue and fund campaign promises.

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