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SAFARICOM INCREASES MPESA CHARGES AFTER TAX HIKE

New Mpesa transaction charges

Consumers will now have to dig deeper into their already stretched pockets as the new revised Mpesa transaction charges take effect.

Safaricom announced the decision to increase mpesa transaction charges with effect from July 1, following the government’s move to increase tax on mobile money transactions last month.

Treasury Cabinet Secretary Henry Rotich increased excise duty on mobile transactions to 12 per cent, up from 10 per cent in the 2018 budget, which means for every Ksh100 sent it will cost you (and benefit the government) Ksh12.

Safaricom had protested the move saying that the increased taxes will have a negative impact on money mobile transfer services as well as affect the unbanked population, who rely on mobile money for their financial transactions.

“Our view is that increased excise duty on mobile money transfers will negatively impact mobile-led transfer services and payments and slow down the Government’s drive towards a cash-lite economy,” said Sateesh Kamath Chief Financial Officer Safaricom.

The Kenya Forum had also in a previous article; KILLING THE GOOSE: ROTICH’S MPESA TAX HIKE IS FOOLISH, criticised the Rotich’s decision to increase tax on mobile transactions saying it was increasing the burden to already heavily strained wananchi.

“By increasing excise duty on mobile financial transactions CS Henry Rotich is further taxing already taxed income and damaging a system that has worked to the universal benefits of Kenyans. It will be the ordinary Kenyans who will pay the price in more ways than one for Rotich’s folly, the article read in part.

Below are the new mpesa transaction charges

New Mpesa transaction rates

SAFARICOM-INCREASED TAX ON MOBILE MONEY TRANSACTIONS BAD FOR THE SECTOR

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