This archive report was first published on 2 July 2021.
On July 2, 2021, Kenya's President had the option to back or reject new taxes introduced in the government-backed Finance Bill, but the proposal to increase excise duty on airtime and data from 15 percent to 20 percent was not included in the final bill.
However, the Treasury has still implemented the tax hike, which has seen voice call charges rise by up to 2 shillings. The new taxes will see the Treasury raise at least Sh8 billion from Safaricom, Airtel, and Telkom Kenya.
Telecommunications firms have notified customers of the new changes, with one telco informing its customers that their call rate is now Ksh 2.78 per minute due to the increase in Excise Duty from 15% to 20% from July 2.
The new taxes have made internet access and mobile phone calls costlier, with the telecommunications firms passing on the increased costs to their customers.
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