Proposed Finance Bill 2024: Potential Increases in Phone and Internet Charges for Kenyans
If the Finance Bill 2024 is approved in its current form by the National Treasury, Kenyans may find themselves paying more for phone calls and internet access starting from July 1.
Under the proposed changes, the National Treasury suggests raising the excise duty on both telephone and internet data services from 15 percent to 20 percent.
The amendment seeks to replace the existing 15 percent rate with a new 20 percent rate, potentially leading to increased expenses for consumers.
This adjustment in taxes could compel telecommunications companies to transfer the additional financial burden to Kenyan consumers.
Additionally, the bill outlines a plan to elevate excise duty on money transfers, potentially causing Kenyans to incur higher costs when sending funds.
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This development arises amidst President William Ruto’s ambitious agenda for digital infrastructure, which emphasizes nationwide free internet access.
Enhancing access to the Internet has been a key focus of the President’s efforts to foster innovation and improve mobile services, particularly for those engaged in self-employment.
As of the beginning of 2024, Kenya boasted approximately 22.71 million internet users, with internet penetration standing at 40.8 percent.
This isn’t the first instance where the government has proposed increases in charges for calls and internet usage. In the 2020/21 fiscal year, similar proposals were made to raise these charges from 15 percent to 20 percent, alongside Short Message Service charges.
Likewise, in 2018, the government raised call and internet charges from 10 percent to 15 percent.
Meanwhile, the Treasury’s proposed legislation also advocates for elevating excise duty on betting, gaming, and prize competitions from 15 percent to 20 percent.
Proposed Finance Bill 2024: Potential Increases in Phone and Internet Charges for Kenyans
