- Kenya’s Finance Bill 2026 proposes a 16% VAT on digital payment processing, transfers, and merchant acquiring services by ending current VAT exemptions.
- The tax would affect payment service providers and digital intermediaries like M-Pesa, Airtel Money, Pesapal, and Kenswitch.
- Although charged to providers, the added cost is likely to be passed on to businesses, merchants, and consumers.
- Core bank-led financial services and some loan products, including Fuliza and M-Shwari, would remain VAT-exempt.
- If approved, the measure is expected to take effect on July 1, 2026.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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