A new report by the US Trade Representative highlights the growing frustration among US tech investors operating in Nigeria and Kenya. Despite being among Africa’s leading tech hubs, both countries are criticized for poor enforcement of anti-corruption and intellectual property (IP) laws, making it difficult for foreign firms to thrive.
In Nigeria, issues like piracy, counterfeit software, and unofficial payment demands from government officials are major hurdles. Weak judicial systems and porous borders also hinder proper IP enforcement. Similarly, Kenya faces persistent bribery issues and lacks robust IP protections, especially in the digital space. Despite signing a global copyright treaty decades ago, it still hasn’t been ratified.
Recent tax reforms are adding to investor worries. Kenya now charges a 3% tax on revenue from foreign digital services, while Nigeria continues to apply income and VAT taxes on non-resident tech companies. This raises concerns about rising operational costs and regulatory risks for major platforms like Amazon, Meta, and Netflix.
Read the full news here: https://techcabal.com/2025/04/11/us-investors-flags-risks-in-kenya-nigeria