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Originally published by Nation Business
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business
October 18, 2024
11mo ago

Digital payment firms shed 1.5mllion users on higher taxes, controls

Digital payment firms shed 1.5mllion users on higher taxes, controls

Several changes in the mobile money sector, including increase of excise duty, made transactions more expensive for users...

✨ Key Highlights

Digital payment firms in Kenya lost at least 1.5 million mobile money users in 2023 due to increased taxes and tighter controls from the Central Bank of Kenya (CBK) aimed at combating money laundering.

  • Active monthly mobile money users fell from 32.9 million in December 2022 to 31.4 million in December 2023.
  • Central Bank of Kenya issued a financial sector stability report detailing these changes.
  • Tax on transactions rose from 15% to 20% and daily transaction limits increased to Sh500,000.

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