MPESA transaction fees will increase from 12 to 15 per cent as Safaricom moves to implement the Finance Act 2023.

In an advertisement by Safaricom in a local newspaper, the telecommunication company noted that call and data rates will be reduced.

 “We will be reviewing our calls, SMS, data, fiber, and M-PESA pricing to reflect the increase in Excise duty rates on fees charged on mobile money transfer services from 12 percent to 15 percent and the decrease in Excise duty rate on telecommunications services from 20 percent to 15 percent,” Safaricom said.

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 was likely to be crippled if the order was not lifted.

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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.