Safaricom responds to Gov’t plans to tax M-Pesa transactions

Terrible idea

On Monday, Safaricom chief finance officer Sateesh Kamath said that the tax will discourage drive towards modern payment systems.

Last week, Mr. Rotich introduced a 12 percent excise duty on mobile money transfers as he was tabling the 2018/2019 financial year budget.

In response to this proposal, Kamath noted 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-light economy.

"It would be unfortunate to reverse the gains we have made through mobile led financial inclusion in the past few years,”  Kamath was quoted by Reuters as saying.

During the reading of the budget, CS Rotich said that the increased tax would help the government earn revenues to finance important projects.

"Kenya has a well established financial sector with quite a good significant amount of money transacted monthly. These measures are meant to enable the government to get its fair share of revenue to finance some of its key projects," he said.

Other mobile money transfer service include Airtel Money which  owned by Safaricom’s main competitor in Kenya - Airtel.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Uhuru makes surprise appearance at KDF airshow driving himself and Ethiopian PM

Uhuru makes surprise appearance at KDF airshow driving himself and Ethiopian PM

Traders flee to police station over incitement to violence in Kericho

Traders flee to police station over incitement to violence in Kericho

How we defeated Jubilee's plan to replace Ruto with Moi - Rigathi

How we defeated Jubilee's plan to replace Ruto with Moi - Rigathi

4 statements that have made Rigathi an easy target for Azimio

4 statements that have made Rigathi an easy target for Azimio

Joho lights up Azimio rally with audio clips of DP Ruto

Joho lights up Azimio rally with audio clips of DP Ruto

What to expect at Kenya Air Force spectacular air show festival at Uhuru Gardens [Video]

What to expect at Kenya Air Force spectacular air show festival at Uhuru Gardens [Video]

Costly blunder that saw IEBC lock Kalonzo out of presidential race

Costly blunder that saw IEBC lock Kalonzo out of presidential race

Action IEBC will take on politicians using public resources to campaign

Action IEBC will take on politicians using public resources to campaign

Cleophas Malala forced to share academic papers after rumours of being unqualified

Cleophas Malala forced to share academic papers after rumours of being unqualified