Airtel, Telkom join Safaricom with excise tax on mobile fees

Telkom Kenya chief executive officer Aldo Mareuse (left) and Airtel Kenya's Prasanta Das Sarma at a past event. Photo | NMG

What you need to know:

  • The move by the two firms comes just five days after Safaricom raised the cost of calls and SMS.
  • Airtel and Telkom say the new changes are effective midnight.
  • Increments will not affect Airtel money tariffs where no transactional fee is charged on Airtel to Airtel cash transfers.

Telco firms Airtel and Telkom Kenya have raised their call and messaging rates by 30 cents and 10 cents respectively, matching the increase Safaricom #ticker:SCOM announced last week following excise tax imposed on telephone services.

The government in the Finance Act 2018 increased excise duty on mobile services to 15 per cent up from 10 per cent while introducing a 15 per cent levy on internet services.

“In view of the recent increase in excise duty, other taxes and rising input costs, we are constrained to increase our headline voice and data tariffs by 30 cents each and our SMS tariff by 10 cents,” said Airtel Networks Kenya Limited managing director Prasanta Das Sarma.

Telkom chief executive Aldo Mareuse said: “This translates to a revision of our costs as follows: Off-net calls at Sh3.30 per minute, on-net calls at Sh2.30 per minute and SMS (any-net) at Sh1.10 per SMS. In addition, our pay-as-you-go (PAYG) price for mobile data will also see an increase of 30 cents per MB. This translates to a new pay-as-you-go price of Sh4.30.”

Both networks are, however, maintaining that the price of mobile data bundles would remain unchanged.

Telkom further indicated that the mobile postpaid services would also reflect the five percentage points increase in excise duty tax, whereas broadband and fixed voice services would see the introduction of 15 per cent excise duty tax.

The increment is contained in President Uhuru Kenyatta’s proposal to Parliament intended to plug a budget shortfall created by public uproar that followed a proposed 16 per cent value-added tax on fuel.

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