Kenya's top telecom firm told lawmakers that Clause 31 in the Finance Bill 2026 removes VAT exemptions for payment services, adding 16% tax that providers like Safaricom would pass to customers. Treasury Secretary John Mbadi countered on May 26 that the changes target foreign card providers like Visa, not local transfers, and promised administrative fixes to protect users. The news revives memories of 2024 protests, with many fearing higher fees—such as KSh 13 on a KSh 1,000 send—will burden low-income households reliant on digital payments for bills and groceries.
