Kenyans will be charged 10% for sending money through Mobile money transfer.
This follows a move by the Kenyan government to charge 10% duty for all money transfer services provided by cellular phone providers, banks, money transfer agencies and other financial service providers.
Safaricom CEO, Bob Collymore however said on Friday that the government’s move to introduce duty on mobile money transfer was premature as it would affect many Kenyans who are in need of basic financial services.
“We appreciate the need to support government as it seeks to reach its financial obligations. However, we maintain our position that a tax on mobile money is at that this time premature and is likely to have a negative impact on the country’s financial deepening agenda by creating an unnecessary barrier for wananchi who are most in need of basic financial services,” he said in a statement.
The new duty was introduced in amendments contained in the Finance Act of 2012.
The Act contains a raft of tax measures by Treasury aimed at raising revenues for the government to fund growing financial obligations.
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