[kictanet] #KeIGF15 Online Discussions Day Three: Internet Economy

Grace Mutung'u (Bomu) nmutungu at gmail.com
Wed Jul 22 11:41:05 EAT 2015


Hi Barrack,
Thank you for the the questions.
@ Fred on the issue of taxation for the Internet economy....

I was listening to a representative from Jumia the other day on radio. By
her presentation, the volume of merchandise moved per day is quite high and
this business is really catching on in Kenya. If I remember they had an
increase of 900%in turnover in Africa. While they warn that the high sales
have not yet translated into profit, the whole business model is
interesting and at some point the government will want a share of the
profits. The same will happen to the cloud economy and other Internet
businesses, if what happened in Chicago is anything to go by.

However, more needs to be done on consumer education and protection. For
example, when one buys a phone online and it is faulty, should the online
company collect, repair or replace the phone or should the consumer take
the phone to the service centre?
Consumer protection can either be done through self regulation where the
online companies make very good policies on dealing with consumer
complaints. Otherwise , the companies cannot be responsive, then the
law/its enforcement must be strengthened.

Regards,


2015-07-22 7:42 GMT+03:00 Barrack Otieno via kictanet <
kictanet at lists.kictanet.or.ke>:

> Listers,
>
> The rise of the Internet economy in Kenya has been defined by
> different strokes. On  one hand there are small entrepreneurs doing
> their side hustles from offices, small shops and car boots. They
> advertise their merchandise and services on social media and in a
> rudimentary form, some deliver merchandise in backpacks from door to
> door.
> Enter the bigger players who have large websites from where goods and
> services are purchased. Their business models differ. We have
> companies like  OLX, Cheki  that provide a platform for users to
> interact. They make their money from advertising. Others such as Rupu
> and Jumia offer services and merchandise at  reduced prices.
>
> Questions
>
> 1. Does  an adequate legal framework exist to protect consumers from
> fraud, deficient goods and services and to assure consumer rights in
> the budding Internet economy?
> 2. Since the bigger players in the sector are doing well, is time ripe
> for the local Internet economy to be taxed to raise money for
> government services?
> 3. Should other services in the Internet economy such as cloud
> services, international online purchases etc be taxed?
> 4. As a stakeholder , what are your recommendations on how the
> Internet economy can be improved?
>
> The floor is open, feel free to continue contributing to the
> discussions of the previous days.
>
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-- 
Grace L.N. Mutung'u
Nairobi Kenya
Skype: gracebomu
Twitter: @Bomu

<http://www.diplointernetgovernance.org/profile/GraceMutungu>
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