Kenyas technology ecosystem and players in its digital economy are not pleased with a raft of tax expansion measures proposed in a new Finance Bill that is making its way through the countrys legislative scene.
Kenyas tech ecosystem is facing a potential storm as the proposed Finance Bill 2024 sparks outrage from industry leaders. The Bill outlines a series of tax increases with telcos, ride-hailing companies, e-commerce giants, and even the nascent electric vehicle (EV) sector bracing for impact.
The countrys top mobile network operator Safaricom leads the charge, fearing a 20% excise duty on mobile money transfers and internet data will stifle financial inclusion and online access. Safaricom argues the burden will fall on ordinary citizens who rely on M-Pesa, online education platforms, and international money transfers.
Additionally, Telecommunication and Internet Service Distributors led by Safaricom and Airtel under TESPOK, warned of a looming Internet Distribution Paralysis, as a result of expensive operational costs stemming from a proposal to increase Digital Tax, reports local publication Citizen .
"I was in the US with the president's delegation and was given money by a Kenyan who felt that because the tax regime wasn't sure of the charges, she insisted I carry cash to her mother-that will happen a lot and is not the safest way of transmitting funds. We have to factor in the local mwananchi," said Tespok CEO Fiona Asonga.
