Kenya: New tax to be introduced on all Mobile Money transactions
A minimum charge per transaction is about to be introduced in Kenya for mobile money transfer services, said Kenyan Finance minister Njeru Githae.A minimum charge per transaction is about to be introduced in Kenya for mobile money transfer services, said Kenyan Finance minister Njeru Githae.
The Kenyan treasury is working on new regulations aimed at levelling the playing field for all operators, so that those companies offering free money services also get to pay tax like Safaricom, The Star reports.
Airtel and yuMobile have been offering money services within their platform at no charge and argue they are not liable to pay the ten per cent tax, which was recently introduced.
"The concern is about those offering free services as there is always a cost associated with transferring money. So with the minimum charge it is up to the company if it will still want to meet the cost. This will ensure one company will not be at a disadvantage compared to the others," Mr Githae said on February 13th.
Kenya is one of the world's biggest markets for mobile banking services.
Launched by Safaricom in March 2007 in Kenya, the M-Pesa mobile payment platform is now used by more than 16 million clients, within a population of 40 million.