Some shops in the country printed out notices advising their customers that they would not accept Lipa na Mpesa in the coming days.
According to a notice shared by NTV on Saturday, October 14, it showed a shop advising its customers that they would only accept cash or withdrawals.
The new direction is reported to have been triggered by an increase in transaction costs.
“Dear esteemed customers, due to the increased cost of transacting via mobile and banks, we will not be using the Paybill or Buy Goods as from October 1, 2023. Kindly pay cash or withdraw,” the notice read in part.
“We sincerely apologize for any inconvenience,” it added.
Phone transactions increased following the implementation of the Finance Act 2023.
The Act revised the excise duty on mobile money transfer services upwards to 15 per cent from 12 per cent.
This compelled telecommunication companies to increase transaction charges.
“Following the enactment into law of the Finance Act 2023 and the Court of Appeal ruling on 28th July 2023, effective 29th July 2023, we will be reviewing our call, SMS, data, fibre, M-Pesa pricing to reflect the increase in the excise duty rate on fees charged on mobile money transfer services from 12 per cent to 15 per cent and the decrease in excise duty rate in telecommunication services (call, SMS, data and fibre) from 20 per cent to 15 per cent,” Safaricom stated.
