As a result of a tax review, mobile money transfer fees, including those for Safaricom’s M-Pesa, are expected to rise, while bank transfer prices are expected to fall.
The Central Bank of Kenya’s waiver to encourage cashless transactions in response to the Covid-19 outbreak has ended as of March 2020, raising the cost of bank transfers.
The restored rates are up to 61% lower than before the pandemic. For the second time in four years, the excise duty on mobile transfers will be raised. The tax was raised by 12% in four years, up from 10%.
The excise duty on mobile transfers will be raised for the second time in four years.
Four years ago, the tax was hiked from 10% to 12%.
According to data from the Communications Authority of Kenya, there were 38.65 million registered mobile money subscribers by the end of December, therefore increasing mobile money transfers will benefit the vast majority of Kenyans.
In order to share the cost of revenue, the government is focusing on mobile money, which is utilized by millions of Kenyans.
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