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Safaricom Reviews Product Costs Following Tax Increase

Safaricom PLC headquarters in Westlands, Nairobi [Photo/Courtesy]

Safaricom has revised its prices following the amendment of the Excise Duty Act 2015, through amendments to the Finance Act 2021.

The amendment saw the excise duty on telephone and internet services revised from 15 percent to 20 percent, effective July 1, 2021.

In a statement, the telco said that the increased excise duty will reflect on all out-of-bundle voice calls, data, SMS, and integrated plans. The review will also affect roaming and international voice calling and SMS rates.

Other products including fibre and postpay products have also been reviewed to reflect the 20 percent excise duty.

Read: Telkom Kenya Reviews Prices Over Tax Hike

Safaricom also sent out a message to its subscribers, alerting them of a review in the cost of fees for their soft loan product, Fuliza.

“Dear Customer, following the signing of the Finance Act 2021, starting July 6th, 2021 Fuliza daily fees will include 20% Excise Duty. Access fees remains at 1%. Dial *234# for the revised Fuliza charges,” the message reads.

Airtel Kenya last week announced an increase in its headline voice tariff to Ksh2 plus taxes which will equate to Ksh2.78 per minute. Similarly, Telkom Kenya reviewed its headline price for the Pay-As-You-Go Telkom-to-Telkom Voice will increase to KSh.2.78cts.

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Written by Vanessa Murrey

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