Kenya: Bankers Warn Proposed Mobile Money VAT Could Shrink Tax Base
Bankers warn the levy could push users back to cash and undermine financial inclusion as mobile money transfers reached Sh8.66 trillion in 2025, KNBS said.
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Kenya: Bankers Warn Proposed Mobile Money VAT Could Shrink Tax Base
The Kenya Bankers Association (KBA) has pushed back against a proposal in the Finance Bill 2026 seeking to impose a 16 percent Value Added Tax (VAT) on fees charged by digital payment and money transfer platforms, warning that the move could reverse gains made in financial inclusion and digital payments.
Kenya’s mobile money tax plans threaten M-Pesa growth
The NewsKenya’s proposed new taxes risk hampering the growth of fintechs and mobile money services, with Safaricom’s M-Pesa likely to be the worst hit, experts told Semafor.Kenya President William Ruto’s administration is seeking to impose a new 16% value-added tax on services by payment service providers including M-Pesa and Airtel Money under a new finance bill. It also proposes a 25% excise duty on mobile phones, and withholding tax on card p…
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