This would make or mar the Kenyan startup ecosystem, take it or leave it. Kenyan Revenue Authority (KRA) is introducing for the first time, a 16% value-added Tax (VAT) for every download and resultant revenue on all mobile applications in Kenya.

Here Is All You Need To Know

• Kenyan Revenue Authority says the provision of online platforms for use by third-parties has always been a taxable supply under the VAT Act 2013. 
• Hence, bringing it to the table now does not make much difference. 
• KRA Deputy Commissioner for Corporate Policy, Maurice Oray, has consequently announced that all owners of the apps should pay VAT on downloads, besides other taxes under Section 3 of the Income Tax Act.

“VAT applies to those apps because you are providing a service which is not zero-rated or exempted,’’ he said.

‘‘If you are a resident here, you are supposed to pay the taxes the normal way. If you are not a resident but you have an app that’s being used here, your tax representative (a requirement under Section 16 of Tax Procedures Act) must pay your VAT and income tax,” 

To Enforce This New Tax Regime, KRA Is Planning To Mine Data From The Communication Authority of Kenya

In this regard, Kenyan Revenue Authority revenue authority further revealed that it would be working closely with the Communication Authority of Kenya to ensure they get accurate data to enforce the new tax regime. 

By doing so, they would have access to transaction data by resident and foreign-based app developers doing business in Kenya.

A Look At The Kenyan Tax Regime

In Kenya, firms that generate more than Ksh5 million in annual sales are required to register for VAT obligations for supplies, in addition to a corporate tax set at 30 per cent for resident companies and 37.5 per cent for foreign entities.

Those generating a maximum annual turnover of less than Ksh5 million, are not required to register for VAT, but pay a presumptive tax at the rate of 15 per cent of the annual single business permit fee issued by a county government.

The taxman will, however, have to wait for the National Assembly to ratify the “Multilateral Convention on Mutual Administrative Assistance in Tax Matters”, a treaty that enables it to exchange and get specific data on tax evaders across the world.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

Mauritius will have the 10th anniversary version of the Africa Peering and Interconnection Forum (AfPIF) at the Intercontinental Hotel, Balaclava, from 20-22 August 2019, which is being sorted out by the Internet Society and African IXP Association (AFIX) in a joint effort with Rogers Capital. AfPIF 2019 will interface and bring key foundation, administration, and substance suppliers together with policymakers so as to distinguish and talk about approaches to improve arrange interconnection, bring down the expense of availability, and increment locally accessible substance, to support Internet clients over the region.

AfPIF is a yearly occasion that fills in as a stage to build up the African Internet, and was made to address the way that a large portion of Africa’s nearby Internet traffic is traded outside the mainland. Simultaneously, Africa imported over 99% of the Internet traffic devoured, which made a “Web Transit Deficit”. Exchanging traffic locally through Internet Exchange Points (IXP), diminishes Internet access expenses and system deferrals and builds substance get to speeds.”AfPIF has contributed significantly in changing the Interconnection condition in Africa in the course of the most recent 10 years. Locally traffic traded traffic has expanded from under 1 GB to near 800 GB today,” clarified Dawit Bekele, Africa Regional Bureau Director for the Internet Society.

“This is an astounding The accomplishment on account of the solid network built up around AfPIF and I am certain that the current year’s occasion will add to a much increasingly interconnected African Internet,” he added.This is the first occasion when that the occasion is being held in Mauritius and the Indian Ocean Islands district, which is looking to build up its job as an advancement center point for the locale. The Minister of Technology, Communication and Innovation, Hon. Yogida Sawmynaden is expected to talk at the occasion and Rogers Capital will go about as the nearby host.”We are satisfied to have AfPIF 2019 in Mauritius particularly with the extraordinary benefit that the current year’s occasion will correspond with the festival of its 10 years of presence.

As a broadened and advanced business center point for the locale, we trust Mauritius may help open new business viewpoints for the AfPIF delegates. We are anticipating respecting the representatives in August 2019 and to giving our help to the improvement of Internet Infrastructure in Africa,” said Dev Hurkoo, Managing Director, Rogers Capital-Technology.Over 250 members from over the African landmass are relied upon to go to the occasion, with driving innovation suppliers Liquid Telecom, Seacom and Huawei as Platinum backers and AFRINIC, Emtel Business, Linx, Microsoft and Rogers Capital as Gold supporters.

A full rundown of patrons can be found at: https://www.AfPIF.org/AfPIF-10/.Concluding on the open doors ahead, Kyle Spencer, Co-Coordinator of the African IXP Association said “our objective is to limit 80% of Africa’s Internet traffic by 2020, and I accept we’re well on our way. Bundle Clearing House reports that Africa at present observes the most noteworthy development of residential transfer speed generation on the planet, enlisting a 92% expansion from 410 Gbps to 786 Gbps inside the most recent a year — and our inward industry bench-marking information certifies this. It’s an energizing time for Africa, and we anticipate expanding on this force in Mauritius.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

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Egyptian e-health startup Chefaa has just joined startup fund-raising bandwagon. Chefaa has just closed a six-figure US dollar seed funding round from Flat6Labs and 500 Startups as it plans geographic expansion and the rollout of more products.

Here Is All You Need To Know

• The undisclosed investment is a six-figure US dollar amount which came from Flat6Labs and 500 Startups.
• The startup had earlier listed that it was aiming a $150K seed funding target, convertible to 9% equity.
• The investment will be used to help the startup expand both geographically and in terms of its product offering.

“We are currently serving nine Egyptian cities, including Delta and Upper Egypt, and we plan to cover Egypt totally by the end of this year. We will start our expansion plans to the Gulf Cooperation Council (GCC) region by the end of this year as well,” said Dr. Rasha Rady, co-founder and chief operating officer (COO) of Chefaa.

Read Also: Here Are Reasons Egypt’s Startup Ecosystem Is Booming

What Chefaa Does

• Chefaa was founded in May 2017. 
• Chefaa says it is a vision-driven company that helps patients order/schedule and refill their recurring medicine in a GPS-enabled 3-step user journey.
• The startup also helps patients locate medicine by real time search engine. 
• In addition to the 1st medicine dedicated CSR platform to match donations to help chronic patients of low income get their recurring medicine. 
• Chefaa’s services also extend to non-pharmaceuticals via our e-commerce marketplace. 

With our AI structure we are the 1st medical data warehouse in MENA (HIPAA compliant) aiming to help decision makers with data-driven solutions, the startup noted.

• Users can locate medicine using a real-time search engine, make orders, and schedule deliveries with a GPS functionality. 
• It also runs a medicine-dedicated CSR platform to match donations with low-income patients.
• Chefaa received pre-seed funding from Flat6labs Cairo in 2018, as well as a social impact grant from the StartEgypt initiative, and has now closed its seed round. 
• Chefaa is free to use for patients, with the startup charging pharmacies a commission fee on transactions and a monthly subscription fee in case of scheduled monthly packages for chronic patients. It also charges monthly subscription fees to medical and pharmaceutical organisations in return for access to insights.

“In just 12 months we have fulfilled more than 93,000 orders through over 800 pharmacies, and generated total sales of more than US$1 million,” said Rady.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/