President Uhuru Kenyatta has proposed increased taxes on mobile cash transactions in his memorandum on the Finance Bill, 2018 sent to the National Assembly last week.
If Members of Parliament approve his proposals, the cost of sending money through mobile money services such as M-Pesa will increase by 60 percent.
In the memorandum, Kenyatta wants tax imposed on M-Pesa transactions increased from the current 12 to 20 per cent. This comes just weeks after National Treasury Cabinet Secretary Henry Rotich increased tax on mobile money transfers from 10 to 12 per cent.
“Excise duty on fees charged for money transfer services by banks, money transfer agencies and other financial service providers shall be 20 per cent of their excisable value,” Kenyatta says in the memorandum.
The President further seeks to introduce a 15 per cent excise duty on telephone and internet data services. Kenyatta also suggests a 20 per cent excise duty on motor vehicles excluding locally assembled cars and public school buses.
He also wants employers to deduct 1.5 per cent of their employees’ monthly salaries towards the National Housing Development Fund. The funds netted, he says, will go towards actualizing affordable housing, one of his “Big Four Agenda.”
“The objective of the proposed scheme is to enable Kenyans to access affordable housing upon maturity of their individual schemes,” the president proposes.
“Given that many Kenyans do not own a house, removal of this proposal from Employment Act adversely affects their dream of being house owners,” he adds.
“For employees who qualify for affordable housing, the contributions accrue to the employee and shall be used to finance the purchase of a house under the scheme,” Uhuru proposes.
OMG – poor mwananchi, just…
OMG – poor mwananchi, just when the trauma inflicted by Barclays and Standard was about over, our saviour, MPESA, is now going to be used to milk the ‘cows’. As it is Mpesa fees are not low…. but with the convenience, it’s worth it, I’d say, as is…i.e BUT NOT at 60%, NO! Mnataka wananchi waende wapi jameni? We elected you to help us not nyanyasa us….God have mercy!
If I own SHARES in SAFARIcom…
If I own SHARES in SAFARIcom: I will Impose this Tax. And this is what Uhunye seems to be Doing. Wow!!!
Bure kabisa.taxinh the…
Bure kabisa.taxinh the marginalized will not grow the economy. Thus far your budget conveniently is in excess on 37% corruption by your close administrative folks. Get that money and stop being a coward. Start with Ruto then Waiguru..
uuuuuu! Uhuru spent tax…
uuuuuu! Uhuru spent tax payers money on bogus projects i.e SGR which profits go to Chinese workers etc etc. the left IT WENT TO THE POCKECTS OF HIS BUDDYS and now he is coming back for more. This is beyond acceptable Jameni WE cannot accept this bei ya unga, sukari , nyama, rent is up and now this . NO NO NO we already pay too much for bank transfers RTGS cost kes 500 in the banks . He want to kill Safari ourselves we can do it differently without having to use MPESA but the mboga lady will suffer
If I may ask what is the Job…
If I may ask what is the Job description of a Kenyan President?? One person cannot make decision affecting over 45 Million Kenyans.
with technology whatever you impose with time will be useless, people are using application to wire money if we can resist.
http://www.klrc.go.ke/index.php/constitution-of-kenya/130-chapter-nine-the-executive/part-2-the-president-and-deputy-president/300-132-functions-of-the-president
Uhuru will drive Kenya…
Uhuru will drive Kenya Zimbabwe way to imaginable inflation. Increasing tax in everything where does he expect Kenyans to get that money from.
This is one sad reality in…
This is one sad reality in Kenya. Now let’s see what the members of parliament will do.OMG
Haha ma dude is leaning back…
Haha ma dude is leaning back watching his retirement package come to life. Choma tu mbuzi, recline na kajohny mtembezi with a tooth pick in hand as your pension matures.choices do have consequences.
When you choose to be sheep don’t expect the Shepard to always lead you to greener pasture. The end game is always the slaughter house. As long as tribalism prevails, the shysters will always bamboozle you, their stomachs will fill up while your struggles metastasizes and slowly expire your being. Smh we all watched Kenya being looted then turned around and renewed the thieves’ contracts to guard the vault.well, now we must help refill the vault so we can repeat…
47 Counties assemblies, 47…
47 Counties assemblies, 47 Governors, 47 DEPUTY governors, 47 Education Secretaries, 47 Health Secretaries, 47 Speakers, 47 Finance Secretaries, 47 times 20 plus ministries, is just too much for the Government. BUT TAXING MWANANCHI MORE AND MORE WILL NOT SOLVE THE PROBLEM. Just reduce the budget by reducing the Counties from 47 to 10. Do away with Women reps and the Senate. Reduce the number of Mps.Close the useless embassies which all all over the world doing nothing but spending billions. Stop foreign travels by the President and other government officials. Plus any other business… I don’t know everything.
Way to go couldn’t agree more
Way to go couldn’t agree more
Propaganda. Uhuru is not the…
Propaganda. Uhuru is not the finance Cabinet Secretary. He can only sign into law or reject a bill with proposed amendments.
These Kenyan leaders are…
These Kenyan leaders are cooking a Revolution, they just dont understand it.Kweli Tumbili haoni kundule!
You can choose to pay tax or…
You can choose to pay tax or not… Here is how I will not pay tax…
????
*Mobile transaction* ??
I will pay with cash.
*Bank transaction* ??… I will move to Rachel’s Table Banking
*Phone/internet cost* ??,sawa, Uhuru… I will just walk over and deliver my own messages ?
Nitapanda chakula yangu, nitashona nguo na viatu zangu na nitatembea kazini ?
*?JEBBY BISCHOF?*