Safaricom Customers To Get Extra Airtime As Value Added Tax (VAT) Reduction Takes Effect

Kwale residents make phone calls as they celebrate the installation of a Safaricom mast at Shimoni Island on November 12, 2018. [Photo/Courtesy]

Safaricom pre-paid customers will from today, Wednesday, April 1, get a 2% extra airtime as the telecommunication company has effected the reduction of Value Added Tax (VAT) from 16% to 14% as directed by the government last week.

In a statement on Wednesday, the telco said a customer who tops up Ksh100 will receive KSh102 airtime.

In addition, all Home Fibre customers will get back 2%, the cost of the package as a credit to their Home Fibre account to reflect the 14% VAT.

“For instance, customers on the KES 2,900 Bronze package will get a KES 58 credit which will be used for their next monthly payment,  ” said Safaricom.

Safaricom further reviewed all products in all its shops and on its e-commerce website, Masoko, to reflect the 2% VAT reduction.

Read: Safaricom, NCBA Defer Payment Sanctions For M-shwari Customers

“Pricing for all devices including smartphones at all Safaricom Shops and on Masoko have been reduced to reflect the 14, VAT, ” added Safaricom.

“Pricing for all Personal Postpaid, Fibre for Business and for all Corporate Postpaid product and services including Zidisha Plus, Cloud, Security, Collocation, and IOT have been reduced to reflect 14%, VAT and shall be reflected in the next monthly invoice.”

The President announced the tax reliefs on Wednesday last week to cushion Kenyans from the adverse effects of the Coronavirus pandemic.

At the same time, the President ordered the National Treasury to give employees earning less than Ksh24,000 a 100 per cent tax relief.

Read Also: Services That Can Be Accessed Via Safaricom’s Chatbot Zuri

Those earning a gross salary of more than Ksh24,000, the President directed that they pay a maximum of 25 per cent income tax, down from the normal 30 per cent.

The Head of State ordered a reduction of resident income tax (corporation tax from 30 to 25.

The President further ordered temporary suspension of the listing with Credit Reference Bureaus (CRB) of any person, Micro, Small and Medium Enterprises (MSMES) and corporate entities whose loan account fall overdue or is in arrears, effective April 1, 2020.

A day later, Safaricom and NCBA Bank announced that all M-Shwari late payment sanctions including rollover fees will be deferred by 30 days.

Also, all CRB listing of M-Shwari customers who have defaulted their loans will be suspended for the next 90 days.

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Written by Wycliffe Nyamasege

Passionate digital Journalist with a bias for political and current affairs stories.

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