The imposition of VAT on mobile money transfer charges would have increased the cost of payments via the platforms negating a drive to bring down the fees.
By
Kepha Muiruri
Business Reporter
Nation Media Group
Money transfer charges levied by payment service providers (PSPs) such as M-Pesa and Airtel Money will be spared from the 16 percent value added tax (VAT) as MPs propose additional amendments to the Finance Bill, 2026 to exempt the cash transfer services.
Kenya's decision was grounded in two decades of evidence. Mobile money penetration has reached 157.7 per cent, with over 84.1…
Kenya plans new taxes on digital payments and software royalties under the Finance Bill 2026.
Finance Bill 2026 has put the digital payments sector on edge, with the cryptocurrency industry calling on the government to…
25 per cent excise tax will affect the overall cost of gadgets, financial transactions, and banking services.
The proposal was part of a plan to overhaul all taxes on imported phones.
This follows the reduction of VAT on fuel from 16 per cent to eight per cent as part of measures aimed at cushioning consumers…
