Part of the shops have started to refuse the payment service by phone, ‘Lipa na Mpesa’, to avoid the high fee for enabling the purchase.
Sources have seen posters across the country with certain shops that prevent customers from paying for services by phone, mentioning the increase in the cost of the transaction between the phone and the bank.
One of the shops that hit the brakes, ‘Lipa na Mpesa’, has included a business unit for withdrawing and sending money through Mpesa in its business operations.
Customers here are required to give money as a means of paying for services and products. Alternatively, facilitate the business with a cash system.
In this way, this businessman will get a double profit.
One is through money services, and the second is to sell products or services that he has put in his store.
The notice in this shop says, “Due to the increase in the cost of transactions through telephone and bank, we will not allow payment through ‘paybill’ and ‘buy goods’ from October 1, 2023. Please pay in cash or withdraw money.”
The cost of the mobile money service fee has increased due to the implementation of the Finance Act 2023.
The law raised the excise duty from 12 percent to 15 percent.
The incident prompted telecom companies to reschedule mobile money transfer fees.