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Web Hosting Company, SiteGround, No More Registration for Kenyan Business Due to Digital Tax –

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The effects of the new digital tax passed in Kenya which began in January 2021 are beginning to show. Google, Facebook, Uber and several online businesses have already reviewed their high prices while the Kenya Revenue Authority (KRA) is making its tariff plans for all online businesses.

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Bulgarian web hosting company, SiteGround has withdrawn its services from the Kenyan market citing the high cost of compliance. The company said it would not re-sign Kenyan businesses that have been flocking to the website for its affordable services.

“Because of the new local regulations (especially those related to tariffs), we have recently stopped issuing new signatures to several countries and Kenya is one of them,” SiteGround responded to a Kenyan architect, who had tried unsuccessfully to register. account for the client, via Twitter.

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Read: KRA Updates iTax System To Enhance Digital Tax Collection Begins In January 2021

“Observing the aforementioned regulations will be expensive for us, making making our products there impossible for us.”

SiteGround has data centers in the United States, the United Kingdom, Germany, the Netherlands, Singapore and Australia. The company offers a wide range of low-cost solutions including domains, business solutions and email hosting.

A few people however claimed that the company was racist and therefore committed to Kenya. To this, they replied that they had pulled their services from several countries.

SiteGround is very popular with WordPress and Joomla websites which are common in Kenya. Their services are very popular because of the quick customer support and the most powerful time.

Read also: How To Create A Web With Easy Steps

“It’s a huge loss for small businesses that want to start online,” Dennis Macharia, a web designer at Rynode Solutions Ltd, told Daily Business.

“SiteGround is one of the best in the world and whenever I have a problem with a client account, it responds quickly when other platforms do not provide customer support.”

KRA is targeting Sh5 billion from 1,000 traders who earn revenue from the Kenyan digital market.

“The way the tariffs have been developed recently, the potential impact is that they will lower the final tariff rate for KRA,” Kenya’s ICT General Secretary Kamotho Njenga said.

“Taxes may think they are getting creative, but they may be doing poorly for their primary collection because not every investor will show up in public why they have left.”

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