From January 1st, electricity tokens, airtime top-ups, pay-TV subscriptions like DStv will have their prices increased marginally after Kenyan MPs voted to restore Value Added Tax (VAT) to 16 pc.

To cushion Kenyans from the economic downfall brought about by covid-19, the Kenyan Government had reduced VAT to 14pc.

The move to restore normal VAT means the top companies in the country like Safaricom Plc., Kenya Power and Lighting Company (KPLC), and Multi-Choice Wednesday will hike their product prices.

After the 2pc VAT rise kicks in, Kenyans who, on average, consume power worth Sh1,000 monthly, will now pay nearly Sh20 more.

Safaricom users who buy data bundles worth Sh2,900 home fibre will have to pay Sh58 more while DStv subscribers have already got notice of a planned Sh100 increase in subscription charges.

Even as more economic relief measures are being removed, Kenyans earning less than Sh24,000 can smile as they will still enjoy 100 pc tax relief.

The pandemic saw Kenya’s economic output decline significantly and this new move is aimed at rebuilding the struggling economy.

Techspace Africa

Nigel Jr.
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