We’ve got some news that’ll make your calls, SMS, and MPESA transactions do a little dance! Safaricom, our trusty telecom giant, has decided to do a little pricing shuffle to reflect the new Excise Duty rate. But before you panic, let’s break it down and see what’s up with these changes!
The Excise Duty Drama Unfolds
You know how they say change is the only constant? Well, it seems like that’s the mantra for our telecom world too! Safaricom has reviewed its pricing on calls, SMS, Fibre, and MPESA to accommodate the new Excise Duty rate of 15pc, up from the previous 12pc. It’s like a pricing makeover, folks!
Blame It on the Finance Act
Now, let’s talk about the Finance Act 2023, the one causing all this buzz. It came into effect on a Friday, and oh boy, it shook things up! The High Court had put a conservatory order in place following a petition filed by Senator Okiya Omtatah and other activists, but the Court of Appeal said, “Not so fast!” and lifted that order. Safaricom was left with no choice but to adjust its pricing accordingly. It’s like a courtroom telenovela, isn’t it?
Pricing Review Galore
So, here’s the scoop straight from the horse’s mouth, Safaricom: “We will be reviewing our calls, SMS, data, fiber, and M-PESA pricing to reflect the increase in Excise duty rates on fees charged on mobile money transfer services from 12 percent to 15 percent and the decrease in Excise duty rate on telecommunications services from 20 percent to 15 percent.”
The Appellate Court Steps In
Now, it’s time for a plot twist! The Appellate Court said, “We hear you, Treasury Cabinet Secretary Prof. Njuguna Ndung’u,” and lifted that pesky High Court order. The government was relieved, like a load lifted off its shoulders! But hey, the Court didn’t take this decision lightly; they knew there would be some serious economic consequences if they didn’t act. It’s like a legal drama with economic repercussions!
Azimio Plans to Protest
Ah, politics and protests, a match made in Kenyan heaven! The Azimio coalition, led by Raila Odinga, isn’t too thrilled about this Excise Duty twist. They’ve been mobilizing street protests to tackle the high cost of living, and this Finance Act isn’t making things easier. They’ve got something up their sleeve, and they’re planning to announce their next move on Sunday. It’s like a chess game with political moves!