NAIROBI (Xinhua) --
Kenyan financial institutions have increased
their charges following the raising of taxes by the government.
The banks and
savings and credit co-operative societies (Saccos) have passed
the costs to customers, pushing many to the edge.
Fund managers and
insurance companies are also expected to raise their charges as
they are affected by the new tax.
While some banks and
Saccos have already imposed the new charges, others have
notified customers that they will take effect from Oct. 1.
The taxes are
contained in a finance law passed by parliament last week and
signed by President Uhuru Kenyatta soon after. It raised excise
duty on all financial transactions from 10 percent to 20
electronic money transfer, ATM and mobile or internet banking
services and over-the-counter withdrawals.
The taxes were also
slapped on popular mobile money services and fuel products as
the government seeks to raise revenue to plug a budget deficit.
Kenyan banks raked
in 7 million dollars in fees and commissions in 2017, a slight
rise from previous year.
Central Bank of
Kenya monetary policy committee said Tuesday that the new tax
could affect cash inflow in the economy.