Tuesday, November 29, 2016

Treasury report reveals fears over M-Pesa’s critical role in economy

Safaricom chief executive Bob Collymore. PHOTO | FILE
Safaricom chief executive Bob Collymore. PHOTO | FILE 
By KIARIE NJOROGE
In Summary
  • A compromise of the system would have a multiplier effect on them and the State due to their diminished spending power, which would affect tax collection.
  • Some Sh2.8 trillion was transacted through mobile money last year, making it a crucial source of excise tax revenue for the government. A 10 per cent excise duty is charged on mobile money transfer services.
  • Kenya Revenue Authority (KRA) data shows that a total of Sh9 billion was collected in excise tax from financial services but does not indicate what share of this is from mobile money

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