Kenya: Safaricom to raise mobile money rates
In a move that already has many users crying foul and urging the government and regulator in Kenya to intervene, Safaricom announced it was to increase its M-Pesa rates beginning February 8.
The Kenyan telecom operator said that government’s recent amendments to the Customs and Excise Duty Act, which went into effect on Friday, “has affected an upward review of its M-Pesa tariffs, which will take effect on February 8.”
The company listed the new rates as follows: “Tariffs for transactions worth more than KES 101 will go up by 10 percent, with charges for transactions under KES 100 remaining unchanged.”
Many in Kenya have called on the government and telecom operators to find common ground on rates and services, with the objective of preventing increases where there is no improvement on services and options for the consumer.
“The amendments are contained in the Finance Act of 2012, which introduces a 10 percent excise duty on transaction fees for all money transfer services provided by mobile phone providers, banks, money transfer agencies and other financial service providers,” added Safaricom.