MPESA Raises Fees Over New Tax
I noted few weeks ago on the Nigeria's 0.005% electronic transaction levy that companies would not necessarily bother as they would pass the tax to customers. Yes, most times, if they cannot absorb those taxes or fees and still remain in business, they simply move them to customers.
Banks, insurers and fintechs would also help to collect the new levies since anything electronic transaction would be levied the 0.005%. Unfortunately, WhatsApp, Skype, Instagram etc would not be in that list. And that is the problem.
In far away Kenya where a similar tax was introduced, MPESA fees are jumping up. Simply, government gets it money from its citizens, not necessarily from companies. If you look at it, government has reduced payrolls since most of those users work for governments.
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fter the government proposed an increase on the excise duty charged on mobile money transactions, it was only a matter of time before we saw service providers adjusting accordingly and of course, the consumer would feel the biggest pinch.
First in line is Safaricom who recently announced a change in their M-Pesa transaction charges effective July 1, 2018. The new charges have an increase of between Kes.1 and Kes.3 across different transaction brackets.