Safaricom increases sim card, phone prices as new taxes come into effect

Safaricom increases sim card, phone prices as new taxes come into effect
This according to a report by Kenya Bankers Association study that reveals that β€˜Okoa Stima’, an app that allows users to borrow electricity and pay later attracts up to 43. 4 percent interest rate/FILE.

NAIROBI, Kenya July 15 – Kenyans will now pay more for mobile phones and sim cards as the Finance Act 2022 takes effect.

Mobile network operator Safaricom has announced a review in the price of its products to match the increased taxes on the items.

The Government of Kenya implemented a Sh50 excise tax on SIM cards and a 10 per cent excise tax on imported phones as part of the Finance Act 2022.

In addition, the East African Community has applied a 25 per cent import duty on phones as part of the Common External Tariff.

β€œAccordingly, effective 15th July 2022, we will be reviewing our SIM card pricing to KSh. 50 + KSh. 50 airtime first top up to include the excise tax,” said Safaricom.

Further, the telco said phone prices will be adjusted to include the 10 per cent excise tax and 25 per cent import duty as existing stock levels are replaced with new stock on which the new taxes apply.

Safaricom’s rivals, Airtel and Telkom, currently do not charge for new SIM subscriptions.