Thursday, September 23, 2021
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Safaricom, Airtel and Telkom hike prices after increase of Excise Duty

With the signing of the Finance Act by President Uhuru Kenyatta, new tax rates have become official effective 1st July 2021. Excise duty has increased from 15% to 20%. And that means very many companies will need to readjust prices of different services and commodities over time to be able to absorb the charges.

You’ve definitely received texts from different companies informing you of the changes. In the telecommunications industry, Safaricom, Airtel, and Telkom have already communicated the changes users can expect with these new tax rates.

The tables below will breakdown the new taxes as per what has been communicated, and will be updated over time as more information becomes available.

Safaricom rates after taxes:

ServiceBefore (KES)After new taxes (KES)
Home Fibre Old Packages hereNew Packages here.
Post Pay Post pay packages hereOut of bundle customers to be affected

Communication on extra charges to be shared
Calls (peak)3.50 Peak
1.80 Off-peak
4.87 Peak
2.50 Off-peak
SMS0.861.20
Data without bundle3.504.87 per MB
M-Shwari 7.5% Fee9% Fee
KCB M-Pesa7.35% Fee8.64% Fee
Fuliza1% Access Fee1% Access Fee + 20% Excise Duty on Daily Fees

The changes mostly affect customers when they’re out of a bundle. So for example, if you are browsing data out of a bundle, you will now pay more per MB than before. And this cuts across all tariffs, including Post Pay customers who may be out of bundle.

Storo Bonus, Okoa Jahazi and all other offers will also include the new taxes.

We may see new bundle prices over the coming months, however this hasn’t been communicated, and perhaps the communicated changes will be enough to absorb the extra taxes.

Read more on Safaricom changes here.

Airtel Kenya rates after taxes:

ServiceBefore (KES) After new taxes (KES)
CallsKES 2 per minute
KES 4 per minute
KES 2.78 per minute to all networks
KES 4.5 per minute to all networks

(to join the 2.78 per minute tariff, dial *544*2#)
SMS0.861.20
Post Pay July Bill to include 20% Excise Duty
Data without bundle5 per MB5 per MB

Airtel has said apart form the changes above, voice, SMS, and Data bundles prices remain same. As with the rest, we still may see bundle prices change in the future. Read more on Airtel’s changes here.

Telkom Kenya rates after taxes:

ServiceAfter new taxes (KES)
Calls2.78 Telkom to Telkom
4.30 Telkom to other Networks
SMS1.15 Telkom to all networks
Data without bundle4.50 per MB

Also, as with Airtel and Safaricom, Telkom customers using a bundle won’t be affected by these changes. Read more on Telkom’s changes here.

Dickson Otienohttps://tech-ish.com
I love reading emails when bored. I am joking. But do send them to editor@tech-ish.com.

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