Digital lenders move to court to challenge 20 percent excise tax

The banking sector regulator has so far cleared just three percent of all the 288 applications eyeing the digital loans market. FILE PHOTO | NMG

Digital lenders on Thursday moved to court seeking to revoke the 20 percent excise tax on loans advanced to online borrowers, setting it on a collision course with the incoming government.

Through their umbrella body, Digital Finance Services Association of Kenya, the lenders want the court to suspend further implementation of the Excise Duty Act as amended by the Finance Act 2022, pending the determination of the suit.

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