M-PESA Transaction Charges Increase Following Enactment of The Finance Act

Kenya’s largest telecom operator, Safaricom is reviewing the pricing for its various services including Mpesa charges after Kenya’s Court of Appeal lifted the suspension on the Finance Act, 2023.

Busia Senator Okiya Omtatah had filed a petition against the implementation of the Act after the president had signed it into law which saw the Act suspended. The Court of Appeal lifted the suspension on 28th July following an application from the CS of Treasury, Prof. Njuguna Ndung’u.

The new M-PESA transaction charges will increase from 12% to 15%. The updated Mpesa charges took effect on 29th July 2023 and reflect changes in the Exercise duty on goods and services as outlined in the Finance Act following its enactment. In addition, excise duty on SMS, calls, and Home Fibre will decrease by 5% (from 20% to 15%).

A statement from Safaricom announcing the changes reads: “Effective 29th July 2023, we will be reviewing our call, SMS, data, fiber, M-PESA pricing to reflect the increase in the excise duty rate on fees charged on mobile money transfer services from 12% to 15% and the decrease in excise duty rate in telecommunication services (call, SMS, data and fibre) from 20% to 15%.”

The enactment of the Finance Act will also see digital content creators pay a 5% withholding tax.

Updated M-PESA Transaction Charges

Here are the revised M-PESA tariffs:

Transfer To Other Registered Mobile Money Users

Withdrawal from M-PESA Agents

Transfer to Other M-PESA Users, Pochi La Biashara, and Business Till To Customer

Transfer To Unregistered Users

ATM Withdrawal

Other Charges

You can view the application charges on the go by dialing *334# or using the M-PESA cost calculator on My Safaricom App.