This archive report was first published on 30 June 2021.
June 30, 2021, marked a significant day for Kenyans as the government proposed a hike in excise duty on airtime and data. This move, if implemented, could lead to a substantial increase in internet and airtime costs for millions of Kenyans.
According to the proposal, the excise duty on airtime and data would be increased from the current 15% to 20%. This would result in an estimated KSh 8 billion in revenue for Safaricom, Airtel, and Telkom Kenya.
President Kenyatta now has the final say in this matter, and his decision will have a significant impact on the lives of Kenyans. The proposed tax hike could make bank loans, internet access, and mobile phone calls more expensive than they already are.
With the country already grappling with tough economic times, the proposed tax hike could exacerbate the situation. The pandemic has led to a rise in joblessness, poverty, crime, and mental disorders, and this move could further reduce internet usage, which is essential for connecting to employment and education opportunities.
Young people who rely on the internet to make a living could be particularly affected by this proposal. Those who cannot afford to pay for a monthly WiFi package rely on hourly bundles, and this tax hike could change their budgets significantly.
The government's proposal is part of a broader effort to increase revenue through various means, including the gaming industry, betting and lottery tax, and fuel prices. However, this move has raised concerns about the impact on the common citizen, who is already struggling to make ends meet.
