M-Kopa, a leading Kenyan pay-as-you-go fintech provider, is navigating tax challenges as it expands its regional footprint.
As General Manager Martin Kingori confirmed, M-Kopa has contributed Ksh.17 billion in taxes since its founding. However, due to higher taxes, the company has seen product landing costs surge by 37.5% since July 2022, prompting it to establish a local assembly facility in Nairobi to better manage expenses.
Compliance Director Kageni Mburu addressed recent concerns from the Kenya Revenue Authority (KRA) regarding bad debts. Mburu noted that M-Kopa has implemented strategies to address payment defaults following a Tax Appeals Tribunal ruling that fined the company Ksh.885.87 million due to insufficient documentation on management location and lousy debt from defaulters.
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Both KRA and M-Kopa have since filed appeals, leaving the cases unresolved. Mburu reassured that M-Kopa remains compliant regarding VAT and PAYE, underlining the company’s dedication to transparency in tax matters.
M-Kopa also raised concerns about the potential reintroduction of taxes on locally assembled devices, warning that such a move could affect investor confidence and disrupt local manufacturing gains.
Kingori emphasized the company’s commitment to contributing to Kenya’s economic growth and called for tax policies that support sustainable development.
