Taxing Kenya’s M-Pesa Picks the Pockets of the Poor
Kenya has instituted a new tax that affects users of M-Pesa -- a widely popular phone-based money transfer service used by more than half of Kenya’s adult population. The new 10 percent excise duty on fees charged for money transfer services applies to mobile phone providers, banks, and other money transfer agencies. Operated by Safaricom, the largest mobile network operator in Kenya, M-Pesa accounts for the largest share of users of money transfer services. Users of M-Pesa products will therefore bear most of the impact of the tax.
The Wonkcast is taking a brief summer vacation. We’ve selected this show from our archives- it was originally posted on June 1, 2010.
The Wonkcast is taking a brief summer vacation. We’ve selected this show from our archives- it was originally posted on June 1, 2010.