Kenyan Banks Begin Implementing 20 Percent Increase on Transaction Fees
Kenyan banks have began implementing the increased taxes imposed on cash transactions through the Finance Act 2018.
Some lenders have informed their customers that the changes took effect on Tuesday, days after President Kenyatta signed the Finance Bill into law.
“Dear Customer, effective today 25/9/18 and in line with the Finance Act 2018, Excise Duty charged on all bank transaction fees has increased from 10% to 20%,” read a notification sent to customers by Kenya Commercial Bank (KCB).
The new law requires cost of bank charges including ATM, account fees and over-the-counter withdrawals be doubled from 10 percent to 20 percent.
“Dear customer, to avoid service interruption as from 6pm today, kindly update your Mcoopcash Android application immediately,” read a message from Cooperative Bank of Kenya to its customers.
Equity Bank has also implemented the levy and has updated terms and conditions on its mobile App.
Mobile money service providers will also implement the levy in line with the Act by increasing charges on transactions through the platforms from 12 to 20 percent.
“Excise duty on fees charged for money transfer services by banks, money transfer agencies and other financial service providers shall be 20 per cent of their excisable value,” the Finance Act states.
Comments
With all these unnecessary…
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With all these unnecessary debt being created by the Dynasties, it's time for Kenya to deal with the consequences. If Kenya can't pay for those debts, the government must allow strenuous conditions to milk the citizens. Excessive debts have consequences. Taking our books to Washington or to China will be next.(Nyayo era). God give Kenya leaders not politicians. God help Kenya!!
20 per cent is a lot of…
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20 per cent is a lot of money, that's 20cents per every shilling transaction, and for what? Remember that bank customers will get the very same service they always get- nothing more but now have to pay more. These banks make billions as their annual profit, and remember, they manufacture nothing, they innovate nothing- they just giggle money around from one hand to another all day long, and grab some in the process calling it transaction fees. People, this is a ripoff. Same service, extra-fees.
Hahaha, time to put money in…
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In reply to 20 per cent is a lot of… by Mwororo (not verified)
Hahaha, time to put money in the mattress cos this ripping will not fly. Why would one pay 20% to withdraw their own freaking money? These banks will very well close.
This is absurd! I wonder if…
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This is absurd! I wonder if the government understand that when someone takes money to a bank, it’s money that has been taxed already either as a salary or business. So if one takes the money to bank and get taxed upon withdrawal it’s double taxation!! This will be felt deep by the common mwananchi, sad.
From 10% to 20% meaning 100%…
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From 10% to 20% meaning 100% increase if over counter withdrawal was 500 sasa ni 1000 what next simple reduce the number of MPIGS and MCAs even cabinet secretaries by Half.
One of the main reason why…
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One of the main reason why people take money to the bank is to avoid it being stolen. If the banks in collaboration with the government is stealing 20% of it. People will look for other places to keep their money eg. under the mattress, kuchinjia shimo, barter trade, Karimu
I think the aim of this tax…
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I think the aim of this tax is to impose a cashless society and hence most of the transactions will be done electronically because it’s cheaper and audit trail is easier in addition to that KRA has been linked with all bank accounts you get taxed according to your bank balance.Digitizing the whole process.Hence the reason why Mr Gates is piloting a platform for all banks in Kenya.Say no more.,,
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