GLOBAL – The United States and China have finalised a deal to transfer ownership of TikTok’s US operations to a new American-led entity, US Treasury Secretary Scott Bessent announced on Sunday, 26 October 2025. The agreement, described as part of a broader trade framework, is scheduled to be formally signed by US President Donald Trump and Chinese President Xi Jinping in South Korea this Thursday, 30 October 2025, East Africa Time. While the move aims to resolve Washington's long-standing national security concerns over the popular video-sharing app, it raises significant questions for its massive user base in Kenya and across Africa regarding data sovereignty, content regulation, and the digital economy.

Speaking on CBS's 'Face the Nation', Secretary Bessent confirmed the breakthrough, stating, “We reached a final deal on TikTok... all the details are ironed out, and that will be for the two leaders to consummate that transaction.” Bessent, who was sworn in on 28 January 2025, clarified his role was to secure Beijing's approval for the transaction, which he said was accomplished following negotiations in Madrid. The deal follows a September 25 executive order by President Trump that paved the way for the ownership transfer.

Details of the complex ownership structure remain sparse, but it is understood to involve a US-based joint venture with a majority of American investors and board members. ByteDance, TikTok's Chinese parent company, will retain a minority stake of less than 20%. Conservative media owner Rupert Murdoch and Oracle’s Larry Ellison have been named by President Trump as likely new US investors. Oracle is expected to manage the security of the app's US operations.

Implications for Kenya's Digital Landscape

The decision in Washington has immediate relevance for Kenya, where TikTok has become a dominant cultural and economic force. As of early 2025, the platform had 15.1 million Kenyan users aged 18 and above, reaching over 55% of the country's internet user base. This represents a staggering 42.7% year-on-year growth, making it a critical platform for content creators, small businesses, and political discourse. A July 2025 report noted that 70% of Kenyan TikTok users trust influencer opinions, highlighting the app's power in the digital marketplace.

The core of the US-China dispute has been the security of user data. This concern is mirrored in Kenya, where the government has been scrutinising the platform's compliance with local laws. In March 2024, Interior Cabinet Secretary Kithure Kindiki informed Parliament that the National Security Council (NSC) was assessing threats posed by TikTok and considering a ban for public officials to protect sensitive government data. The government has formally required TikTok to demonstrate its compliance with Kenya's Data Protection Act of 2019.

This international ownership change will be closely watched by Kenyan authorities. The key question is whether the data of non-US users, including millions of Kenyans, will be subject to the same security protocols and firewalls as US data under the new Oracle-managed structure. The deal could set a global precedent for how multinational tech platforms are governed, potentially influencing Kenya's own recently amended cybercrime laws. On 24 October 2025, President William Ruto defended the strengthened Computer Misuse and Cybercrimes Act, stating it was necessary to protect young people from online harm and bullying.

A Geopolitical Precedent

The TikTok agreement is a significant development in the broader US-China trade and technology rivalry. The upcoming meeting between Trump and Xi in South Korea, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, is their first face-to-face encounter in Trump's second term and is aimed at de-escalating a protracted trade war. The framework for the deal was reportedly established during recent talks at the ASEAN summit in Kuala Lumpur, Malaysia.

For Kenyan creators and businesses who rely on TikTok for their livelihood, the stability of the platform is paramount. Any changes to its algorithm, content moderation policies, or data management under the new ownership could have a direct financial impact. As the final details of the deal are confirmed on Thursday, millions of Kenyans will be waiting to understand how this global power play will reshape their digital world.