It is possible that the controversial Finance Bill 2023 is going to be implemented in the coming days. This is because of the suspension of the implementation of the Finance Act 2023, which was issued last month, has been lifted by the Court of Appeal. The decision came about after Treasury CS Prof Njuguna Ndung’u presented his argument, stating that the freeze was causing the government to lose half a billion shillings daily. A bench of three judges at the appellate court ruled to lift the suspension on June 30, pending the final determination of Prof Ndung’u’s appeal.
The Bill has been unpopular because of its proposals that have hiked taxes for Kenyans. For instance, social media creators now have to part with a section of their earnings for VAT. More details can be read here.
Telco Safaricom has revealed that it will review how it prices its services, including M-PESA charges and mobile-based services (cost of SMS, calls and data).
In this case, M-PESA charges will reflect the new excise duty from 12 percent to 15 percent. However, the cost of data, SMS, voice and fibre will drop after the excise duty on the same was reduced from 20 percent to 15 percent.
“Following the enactment into law of the Finance Act 2023 and the Court of Appeal ruling on 28.’ July 2023, effective 29th July 2023, we will be reviewing our Call, SMS, Data, Fibre and M-PESA pricing to reflect the increase in Excise Duty rate on fees charged on mobile money transfer services from 12% to 15% and the decrease in Excise Duty rate on telecommunication services (calls, SMS, data, and fibre) from 20% to 15%. Details on pricing of each product or service are available at our different touchpoints including Safaricom.co.ke, Safaricom.com, MySafaricom App, the M-PESA Super App, *1008, *200#, *5448, *456#, other USSD codes and M-PESA agents,” reads a statement from Safaricom.
The exact numbers have not been communicated. However, knowing Safaricom, the new charges will be communicated in a timely manner.
