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Originally published by Capital Business
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business
May 25, 2026
2h ago

Bankers Warn Proposed Mobile Money VAT Could Shrink Tax Base

Bankers Warn Proposed Mobile Money VAT Could Shrink Tax Base

NAIROBI, Kenya, May 25-The Kenya Bankers Association (KBA) has pushed back against a proposal in the Finance Bill 2026 seeking to impose a 16 percent Kenya breaking news | Kenya news today |..

✨ Key Highlights

Kenya's banking sector is strongly opposing a proposed 16 percent Value Added Tax (VAT) on mobile money and digital payment fees, warning it could negatively impact financial inclusion and tax revenues.

  • The Kenya Bankers Association (KBA) argues the tax, part of the Finance Bill 2026, would push users back to cash and the informal economy, hindering tax collection.
  • The tax risks discouraging electronic transactions in a country that has become a leader in digital payments in Africa.
  • Bankers suggest lowering transaction costs would instead boost digital payments, increase economic activity, and widen the tax net.

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