Kenya abolishes software import tax in hopes of reducing piracy

In an attempt to reduce the level of software piracy, the government of Kenya has abolished the software import tax. This was announced by the Minister of Finance of Kenya during the presentation of the new annual budget in parliament last week, reports HumanIPO.



According to the government, it was the exorbitant prices for licensed software that led to the fact that more than 83% of the software in the country was pirated last year.



“In order to restore order in the industry and attract foreign investment, I propose to abolish duties on all imported software in order to make it cheaper for our people and in the future to attract foreign investors to this industry,” said the Minister of Finance.

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The commercial value of pirated software installed on computers in Eastern and Southern Africa, excluding South Africa, was $ 108 million in 2011. The 83% piracy rate in this region is almost twice the global piracy rate of 42%, according to the Business Software Alliance.



Among the main reasons for the high level of piracy are high prices for licensed software, as well as the lack of strict rules and controls to combat piracy. The Kenyan government hopes that the expected price cuts stimulate the growth of computer technology, which Kenya considers one of the most important factors in its development plan until 2030 .