C
Originally published by Capital Newstop
May 21, 2026
3h ago
Bankers warn card and digital payment taxes might lead to financial exclusion
KBA further cautioned against a proposed 16 per cent Value Added Tax (VAT) on digital payment processing and money transfers, warning that the compounding tax burden would inflate total digital financial transaction costs from 15 per cent to 58.4 per cent. - Kenya breaking news |..
✨ Key Highlights
Kenya's banking sector is strongly opposing proposed taxes in the Finance Bill that could significantly increase the cost of digital payments and potentially lead to financial exclusion.
- The Kenya Bankers Association (KBA) warns that new taxes on card transaction fees and digital payment processing could inflate total transaction costs by up to 58.4%.
- The KBA argues that taxing these financial services contradicts a Supreme Court ruling and undermines legal certainty, while also raising concerns about compliance confusion for merchants.
- Additionally, the KBA opposes a clause that would allow the Kenya Revenue Authority (KRA) to deem 60% of a business's undistributed income as dividends, potentially impacting reinvestment and economic growth.
Continue Reading
Read the complete article from Capital News
Advertisement
Related News
Advertisement