Players in mobile money and possibly FinTech solutions space in Kenya are deeply disappointed following a review by the country’s treasury that will see excise tax on mobile money transfer rise from 10% to 12%.
Safaricom, as the telecom with the leading mobile money transfer solution M-Pesa, has come out expressing its disappointment with the move. The telecom argues that the move will impact the poor most adversely, and will undo most of the gains mobile money and fintech solutions have had on the economy. The telecom further went on to say the move does very little in promoting a cash-lite economy; if anything, it is taking the country steps away from that target.
The review of the excise duty was revealed when the Treasury secretary Henry Rotich read out the 2017/2018 budget. He pointed out that the increased excise duty on mobile money will go towards funding universal healthcare program. The government of Kenya has a plan of extending the program to cover all households in the country by the year 2022.
“We appreciate that the government needs taxes to meet its fiscal objectives, but our view …read more