Mbadi defends proposed tax on Visa, Mastercard transactions
The proposal in the Finance Bill 2026 seeks to amend the Income Tax Act to classify interchange fees and merchant service fees from card transactions as management or professional fees subject to withholding tax. Kenya breaking news | Kenya news today |..
✨ Key Highlights
Treasury Cabinet Secretary John Mbadi is defending proposed tax changes in the Finance Bill 2026 that would impose withholding tax on fees paid to global card payment firms like Visa and Mastercard.
- The proposed tax targets interchange fees and merchant service fees from card transactions, classifying them as management or professional fees subject to withholding tax.
- The move aims to broaden Kenya's tax base by taxing income earned from the country's financial sector.
- CS Mbadi stated that the tax is not intended to increase consumer costs and confirmed the removal of other controversial proposals, including taxes on bottled water, mobile phones, financial services, and second-hand clothes.
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Mbadi Defends Proposed Tax on Visa, Mastercard Transactions - May 2026
Treasury Cabinet Secretary John Mbadi is defending proposed tax changes in the Finance Bill 2026 that would impose withholding tax on fees paid to global card payment firms like Visa and Mastercard. Economic experts are warning that Kenya's aggressive push for its Affordable Housing Programme could harm long-term economic growth by diverting crucial resources from more productive sectors. Land prices in sought-after Kenyan coastal towns like Diani and Watamu have seen significant increases of over 70 percent since the start of the COVID-19 pandemic.
