Kenyan Judge Shuns New Tax on Mobile Money, Bank Transfers

  • by Dennis Ola
  • July 20, 2018

As Ugandans continue to lament about the recently introduced taxes on mobile money transactions and social media, a Court in Kenya has suspended the implementation of new taxes imposed under the Finance Bill 2018, including those on mobile money and kerosene in the neighboring country.

Kenya’s Justice Wilfrida Okwany issued the directive saying there would be no practical way of compensating Kenyan taxpayers who have already been affected by the implementation of the new taxes.

“I am satisfied that from the material placed before me, the petitioner has made out a prima facie case with a likelihood of success and I find that it is necessary to grant conservatory orders to preserve the subject matter of the suit while awaiting final determination of the constitutionality of the Finance Bill 2018,” ruled Justice Okwany.

Meanwhile, Uganda is already implementing its 1% Mobile money tax. However there is a proposal before parliament to revise it to 0.5%.

The Kenyan judge issued the directive in a case in which a Kenyan activist Okiya Omtatah challenged the implementation of the new tax measures.

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