Kenyans have voiced their anger over the high cost of buying airtime through local banks.
A spot-check by Capital Business shows that the Co-operative Bank of Kenya charges clients a total of Sh22 to buy Safaricom credit worth Sh10.
Deductions include a Sh10 for the airtime, Sh10 (bank charges) and Sh2 (excise duty).
It comes after MPs increased excise duty on airtime and data to 20 per cent from 15 per cent, which is expected to earn the Government Sh8 billion from operators such as Safaricom, Telkom and Airtel.
Clients have been voicing opposition over high charges, coming at a time when a majority of them are facing tough economic challenges induced by the coronavirus.
This comes after the Central Bank of Kenya (CBK) reinstated charges on the transfer of funds from Banks to MPesa wallets, representing a win for financial institutions.
On March 16 2020, the Government waived charges as part of an emergency plan to encourage mobile money transactions at the height of the Covid-19 pandemic.
“The revised maximum charges for transfers from bank accounts to mobile money wallets will be reduced by on average up to 61 per cent, and mobile money wallet to bank account by on average up to 47 per cent,” the regulator said earlier.
“Tariffs for playbills that are used to collect and disburse funds by businesses, companies and institutions will be reduced on average 50 per cent while charges levied by banks for banks to mobile money transactions will be reduced by on average 45 per cent,” it added.