Cost of digital loans to rise on fresh 20pc tax

Borrowers of digital loans remain unfazed by tax measures that have increased credit costs over the last two years. FILE PHOTO | NMG

Borrowers of digital loans will pay more for credit if last-minute changes proposed to the Finance Bill to impose a 20 percent excise tax on fees charged by digital lenders are approved.

The tax will push up interest rates and other fees paid by borrowers for digital loans, including those that were not previously regulated by the Central Bank of Kenya (CBK).

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Note: The results are not exact but very close to the actual.