‘Njugush, Butita make more money than my salary’: Ruto says as he drops proposed tax on content creators

President William Ruto has ordered that the proposed tax on content creators in the controversial Finance Bill, 2023 be dropped as he praised the youth presently occupying the online space for doing a good job in fending for themselves.

President Ruto particularly singled out high-flying content creators Timothy ‘Njugush’ Njuguna and Eddie Butita, whom he commended for blazing the trail for many other young people in the sector.

According to the Head of State, the two content creators – as well as others within the same realm – have found success online courtesy of a partnership between YouTube and the Kenyan government which has enabled them to monetize their work.

As a result, the President went on to state – albeit on a light note - that Butita and Njugush could likely be making more money from their work online than he does occupying Kenya’s top seat in the house on the hill.

He hence directed Parliament’s Finance and ICT Committee to take a second look at the clause on taxing digital content creators in the proposed Finance Bill, 2023 and loosen it up a little bit for the youth to keep earning a decent living through their crafts.

“I know there is a proposal in this year’s budget on digital content and creators… I have told the ICT and Finance committee to work on it. Let’s them give a bit more space, let us allow them wajipange alafu baadaye si sisi wote tutalipa ushuru,” he said on Friday at State House, Nairobi.

“YouTube has been a partner with us, when we did ask them that they allow Kenyans to register from Kenya and to monetise, it was a difficult decision but let me say thank you very much because they have come through for us… that is why we have Njugush and Butita around. These are our great artistes who today are monetising their content.”

President Ruto added: “Pongezi sana gentlemen, those two young men you see there are making more money than my salary, msiwaone hivi ati wamevaa sijui t-shirt, those guys are serious entrepreneurs, congratulations for trailblazing for being the example to many of our young people and knowing that the creative space, the YouTube space is available for our young people.”

The Finance Bill, 2023 had proposed, among a raft of other issues that came under heavy criticism from the public, a 15% withholding tax on income generated from digital content.

“A person who is required to deduct the digital asset tax shall, within twenty-four hours after making the deduction, remit the amount so deducted to the Commissioner together with a return of the amount of the payment, the amount of tax deducted, and such other information as the Commissioner may require,” proposed the Bill.