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Kenya – service providers want consultation on mobile tariff

November 19, 2012 • Mobile and Telecoms, Top Stories

The debacle over the Kenyan government’s decision to push a 10 percent tax on mobile money transfers is continuing with telecom operators calling on the government and regulator to rethink the proposed tariff.

Telecommunication service providers in Kenya are calling on authorities to discuss the proposed 10 percent tariff on mobile money transfers. (Image: Google/ aptantech.com)

Telecom operator Yu has called for consultations with the government and telecom operators in order for both sides to see how the tax would play out for customers.

On Friday, Yu joined leading telecom operator Safaricom in saying the added cost “will be passed on to the consumer if it is implemented,” in contradiction to what Finance Minister Njeru Githae said in reference to operators needing to take on the extra costs.

Government statistics show that mobile money deposits in Kenya were at KES 672 billion annually, equivalent to nearly half of the country’s national budget.

The four mobile players have also been embroiled in the mobile termination rate (MTR) debate and Yu called for a faster resolution by the Competition Authority to level the playing ground.

Yu said its subscriber base has “surpassed the three million mark,” which it said would saw it increase its market share from 2.7 percent in 2011 to the current 9 percent.

Mohammad Awad

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