Safaricom, the leading telecommunications service provider in Kenya, has announced its new M-Pesa rates following the lifting of the suspension of the Finance Act 2023. The changes, set to take effect on July 29, 2023, come in response to an increase in excise duty on mobile money transfer services and a decrease in excise duty on other telecommunication services.
Safaricom’s Pricing Changes
In the notice shared with its customers, Safaricom highlighted the key adjustments to its service prices. Notably, mobile money transfer charges will increase by 3% to reflect the rise in excise duty from 12% to 15%. Conversely, charges for SMS, data, home fibre, and calls will see a reduction of 5 percent due to the decrease in excise duty rate from 20% to 15%.
The company’s official statement reads, “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%.”
New M-PESA rates Effective 29th July 2023
Customer Awareness
To ensure customers are aware of the upcoming changes, Safaricom has made detailed information available on its official website, mobile app, and through USSD codes *100#, *200#, and *544#. This transparency aims to keep customers informed and allow them to plan their budgets accordingly.
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Court of Appeal Ruling
The Court of Appeal recently lifted orders suspending the Finance Act 2023, enabling the National Treasury’s plan to implement the Ksh3.6 trillion budget. The court’s ruling allows for the introduction of some taxes immediately, while others will be phased in periodically. This move comes as the government aims to raise more revenue to support its financial objectives.
Conclusion
Safaricom’s announcement of adjusted service prices reflects the changes brought about by the Finance Act 2023. While mobile money transfer charges will see a 3% increase, other services, such as calls, SMS, data, and home fibre, will experience a 5% reduction in charges. The company’s transparent approach in sharing this information ensures customers are well-informed about the forthcoming adjustments, allowing them to plan accordingly.
