Safaricom has announced that it is increasing its M-Pesa mobile money charges alongside its phone call, SMS and fibre internet tariffs effective from July 29, 2023.
The revision of the tariffs by the country’s largest telecommunications service provider is meant to comply with new provisions as contained in the controversial Finance Act 2023.
The changes come a day the Appellate Court lifted the suspension of the Finance Act with the changes reflecting the raising of excise duty on mobile money transfer services from 12 to 15 per cent.
According to Safaricom, mobile money transfer tariffs will go up by 3 per cent as those on SMS, data, home fibre and phone calls set to go down by 5 per cent.
“Following the enactment into law of the Finance Act 2023 and the Court of Appeal ruling on 28th July 2023, effective 29th July 2023, we will be reviewing our call, SMS, data, fibre, 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 in telecommunication services (call, SMS, data and fibre) from 20% to 15%” read the notice in part.
Subscribers can check the new price adjustment on Safaricom’s website, App or the USSD codes *100#, *200# or *544#.
The Court of Appeal on Friday suspended the orders it had issued in June suspending the implementation of the Finance Act by the government following its passage in Parliament.
In its decision, the appellate court said the decision was meant to pave way for the National Treasury to effect its plan to collect more taxes to implement Kenya’s Sh3.6 trillion budget.
The decision allows the government to raise more revenue through various new measures as the court hears a case filed by Busia Senator Okiya Omtatah challenging the Act’s legality.
“The application by the State has merit and the same is allowed as prayed with the effect that the order made on July 10, 2023, suspending the Finance Act 2023, and the order prohibiting the implementation of the Finance Act 2023, be and is hereby lifted pending the hearing and determination of the appeal,” the court determined.
The decision was issued by Justices Mohammed Warsame, Kathurima M'Inoti and Hellen Omondi and will allow for introduction of new taxes immediately while others are gradual.
The new Act was suspended on June 30 to await the determination of an appeal that had been filed by National Treasury Cabinet Secretary Prof Njuguna Ndung’u, who argued that the Government was losing Sh500 million each day due to the suspension of the new law.