ADDIS ABABA: A new report published on Monday says that mobile money transactions are expected to rise 10 percent in Kenya after the country's Treasury has made a series of moves to levy taxes on the enterprise. Kenyans are frustrated at the announcement, and have urged the government to reconsider the transfer service costs in order to allow users to maintain their ability to be cashless as mobile money continues to boost itself within the telecommunications sector. According to a Standard Media report, the Kenyan central government believes it can earn some Sh4.5 billion from mobile transfer transactions and believes that as voice revenues take a hit, mobile money can alleviate what it says is a cash pitfall. But Finance Minister Njeru Githae has repeatedly said that money transfer services will “meet the new expenses and not [be] passed on to consumers." The report suggested otherwise, saying the Treasury is pushing for the transfer tax to be implemented. Analysts have warned that if the new measures are implemented, it could be a boon for the mobile money sector as more and more Kenyans are using the system because it is cheaper and easier than the traditional bank to bank methods. “This sector is the fastest growing and so the taxman should also get his bite. I expect this measure to give me close to Sh4.5 billion immediately but I do not expect any increase in airtime or the charges to the customer. This tax is payable by the service providers; not the customer," said Githae on Friday. The goal, he said, was to improve the overall make-up of the mobile money sector to bring it in line with banking regulations in Kenya, but added that he didn't expect additional costs to be put on the customer, attempting to alleviate fears in the country.
