This archive report was first published on 2 July 2021.
On July 2, 2021, the Kenyan government announced a new excise duty charge of 20% on digital services, effective immediately.
Airtel Kenya, one of the country's leading telecommunications companies, has adjusted its call rates in response to the new tax.
According to a text message sent to customers, the new voice tariff is KSh 2.78 per minute, up from the previous rate of KSh 2.
However, the company has opted not to increase data and voice bundle prices, which is a relief for customers who rely heavily on these services.
While the new rates may seem steep, they are still considered favourable compared to other options in the market.
As the digital service tax takes effect, it remains to be seen whether other telecommunications companies will follow suit and adjust their rates.