Airtel Kenya has announced that it will not be increasing transaction charges for its Airtel Money users despite the recently passed Finance Act of 2023 increasing excise duty tax on mobile money from 12 to 15 per cent.
In a statement, Airtel says it will absorb the extra cost instead.
“We are pleased to advise that transaction charges for Airtel Money services will remain the same,” read the statement.
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This comes shortly after Safaricom increased its excise duty on M-Pesa charges to reflect the new changes.
Airtel Money users can send for free between Kes 2,501 and Kes 5,000, with M-Pesa customers charged Kes 50.
Like Safaricom, however, Airtel has also cut voice, data, and SMS service rates from 20 per cent to 15 per cent starting August 1, 2023.
This is after the court of appeal lifted the conservatory order by the High Court, stopping the implementation of the Finance Act in an application filed by activist Okiya Omtatah.
The government immediately moved to the Court of Appeal through Treasury Cabinet Secretary Prof. Njuguna Ndung’u, who convinced a three-judge bench that the government would likely be crippled if the order was not lifted.
Justices Mohamed Warsame, Kathurima M’inoti and Hedwig Omondi observed that there will be irreversible economic consequences if the order is not lifted.
“The upshot of our decision is that the application has merit and the same is allowed as prayed with the effect that the order made on 10th July 2023 suspending the Finance Act 2023, and the order prohibiting the implementation of the Finance Act 2023, be and is hereby lifted pending the hearing and determination of the appeal,” the judges ruled.
