Airtel, Safaricom and Telkom Kenya increased call rates over newly raised Excise Duty

 

Airtel Kenya, Safaricom and Telkom Kenya all increased call rates

Subscribers of Airtel Kenya, Safaricom and Telkom Kenya will now dig deeper into their pockets to afford airtime for their mobile phones and the internet.


The Telco giants increased its call rate following the signing into law of the 2021 Finance bill by President Uhuru Kenyatta.


“Dear customer due to an increase in Excise Duty from 15% to 20% from 2nd July, your call rate is now Ksh 4.5 per minute. SMS and Data rates remain the same.- Airtel,” the telco said in a text message to its subscribers.


“Dear customer due to an increase in Excise Duty from 15% to 20% from 2nd July, your call rate is now Ksh 2.78 per minute. SMS and Data rates remain the same.- Telkom Kenya, "  Telkom posted to its clients.

Legislators through the departmental committee on finance and national planning suggested an increase on the rate of excise duty on telephone and internet data services from 15 per cent to 20 per cent.


From that increase in excise duty,  the taxman collects more than Ksh8 billion from Safaricom, Airtel and Telcom which are Kenya’s leading telcos.


When the government increased the excise duty by 5 per cent the telcos also increased the cost of services to factor in taxes.

Safaricom raised her calls rate by 30 cents and SMS by 10 cents.
Zuku increased the cost of its 10mbps package to Sh3,999 from Sh3,500 while those who were paying for the Sh4,198 package had to part with Sh4,598.

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