The government wants multinationals firms with local operations to produce their adverts locally or pay a premium or tax to air them on the local channels.
ICT Cabinet Secretary Joseph Mucheru says the Communication Authority should consider penalising firms for commercials shot in other markets and aired in Kenya.
“Adverts are being done outside the country and they are brought in to Kenya in flash disks and these companies do not pay taxes. We have had discussions and we now need to start implementing airing tax for these adverts,” the CS said.
The CS challenged the Communications Authority of Kenya to evaluate modalities through which it can impose penalties to reduce foreign production of commercials and incentivise the creation of adverts locally.
Why is this important? According to the CS, “The firms who are producing the adverts locally, they are hiring people and paying taxes yet they are being penalised when people take all that money to other countries.”
Charges imposed on producing commercials locally is driven by various national and county government taxes. This, the CS said has resulted in little interest by many firms to make adverts in Kenya. The high cost has also driven local firms to make commercials in other markets leading to the export of jobs and tax revenues for the Government. Imposing penalties on oversea ads he says will help encourage the creation of adverts locally.
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