Finance Act 2023: Safaricom Increases M-Pesa Charges, Cuts Call And SMS Rates

• On Friday, July 28, the Court of Appeal set aside the injunction on the Finance Act 2023 that President William Ruto signed on June 26
• Following the implementation of the contentious law, Safaricom reviewed its data, fibre, call and Short Message Service (SMS) charges
• The giant telecommunications company said the M-Pesa business till tariff will increase from 0.5% to 0.55%

Giant telecommunications company Safaricom has adjusted the charges on M-Pesa after the Court of Appeal lifted the suspension of the Finance Act 2023.

Effective Saturday, July 29, the company announced it had increased the M-Pesa business till tariff from 0.5% to 0.55% to align with the increase in the excise duty rate.

"Dear Merchant, following the Excise Duty increase to 15% under Finance Act 2023, M-Pesa Business Till tariff will change from 0.5% to 0.55% effective 29th July 2023," Safaricom stated in a notice seen by TUKO.co.ke.

The telco also stated it had reviewed down its data, fibre, call and Short Message Service (SMS) charges. This followed a decrease in excise duty from 20% to 15%.

KCB paybill charges

Kenya Commercial Bank (KCB) said normal M-Pesa paybill charges would apply effective Wednesday, July 26, on its number 522533.

"Dear Customer, effective 26/07/23, normal M-PESA paybill charges will apply for payments made from M-PESA to KCB paybill 522533. Payments made from the KCB APP & *522# remain free," the bank said in a notice seen by TUKO.co.ke.

Customers transacting KSh 101 to KSh 500 will pay KSh 4, while transactions between KSh 501 and KSh 1,000 will cost KSh 9.

Paybill is a cash collection service that allows businesses to collect money from customers through M-Pesa.

Appellate court lifts suspension of Finance Act 2023

On Friday, July 28, the Court of Appeal set aside the injunction on the Finance Act 2023 that President William Ruto signed on June 26.

Three judges led by Justice Mohammed Warsame said the appeal filed by the Exchequer to challenge the injunction has merit and thus, the conservatory orders barring the implementation of the finance law have been lifted.

The verdict will be in force before the main suit is conclusively heard and determined; this now allows the implementation of the contentious law.