The Treasury is seeking to impose a 16 percent value-added tax (VAT) on Kenya’s 42 payment platforms, such as Pesapal, Kenswitch, Airtel Money and M-Pesa, which could trigger an increase in user fees for money transfer services.
A Treasury official said that fees earned by the owners of platforms would attract VAT, arguing that the tax will not apply to consumers’ mobile money transfer services and other money transfer services.
