Safaricom customers to pay more for SIM Cards in new changes

Safaricom announced the news stating that from Friday July 15, customers will be buying SIM cards for Sh100 which includes the 50 compulsory airtime after the enactment 2022 Finance Act.

Previously the Safaricom SIM card was free and one would only be needed to pay the Sh50 airtime top-up to activate.

“Customers will purchase the SIM cards at Sh50 with an additional purchase of Sh50 airtime required to top up and activate the line for the first time, for a total of Sh100. Currently, SIM cards are issued for free with a first-time top-up of Sh50 airtime to activate the line,” the company stated.

The price of SIM cards jump up in new changes by Safaricom Safaricom's latest earnings report show H1 profit jumping 12.1% to $330.7 million BI Africa

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Safaricom also stated that prices of imported phones will be raised to contemplate a 10% excise tax introduced in the Finance Act, and a 25 per cent import duty introduced by the East African Community (EAC) under Common External Tariff.

“The Government of Kenya has implemented a Sh50 excise tax on SIM cards and a 10 per cent excise tax on imported phones as part of the Finance Act 2022. In addition, the East African Community has applied a 25 per cent import duty on phones as part of the Common External Tariff," the urgency added.

Due to the increase of taxes different brands of the phones that Safaricom deals in will be forced to increase its prices.

Peter Ndegwa CEO Safaricom, speaking at a media showcase for the launch of the company's 5G service in Kenya, March 26, 2021. Twitter/@Safaricom PLC

These developments comes a few days after Safaricom announced that it will deploy the services of external debt collectors in its new zero interest credit service product Faraja.

The company will involve external debt collectors who will be forced not only to engage defaulters with external collectors but also handover the defaulters’ details to the Credit Reference Bureau (CRB).