Safaric*m announces increase in M-Pesa charges to reflect Finance Act 2023

Telecommunications service provider Safaricom has announced its adjusted prices for its services following the lifting of the suspension of the Finance Act 2023.

Through a notice shared, Safaricom indicated that the new adjustment would reflect the increase in excise duty on mobile money transfer services from 12 to 15 per cent.

In the new changes set to take effect on July 29, 2023, Safaricom has indicated that mobile money transfer charges will increase by 3 percent whereas the charges on SMS, data, home fibre and calls will reduce by 5 percent.

"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%." the notice reads in parts.

Details of the new adjustment are available on the telco's official website, app and USSD codes *100#, *200#, and *544#.

On Friday, the Court of Appeal lifted orders suspending the Finance Act.

In its ruling, the court stated that the move was meant to allow the National Treasury's plan to raise more taxes to implement the Ksh3.6 trillion budget.

The ruling delivered by Justices Mohamed Warsame, Kathurima M'Inoti and Hello Omondi wll see some taxes being introduced immediately while others periodically.

"The application by (the state) has merit and the same is allowed as prayed with the effect that the order made on July 10, 2023, suspending the Finance Act 2023, and the order prohibiting the implementation of the Finance Act 2023, be and is hereby lifted pending the hearing and determination of the appeal," the court ruled.