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MTN raises mobile money charges

By Vision Reporter

Added 2nd July 2014 04:30 PM

Telecom operator MTN has announced an increment in mobile money withdrawal charges effective August 1.

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Telecom operator MTN has announced an increment in mobile money withdrawal charges effective August 1.

By Taddeo Bwambale

Telecom operator MTN has announced an increment in mobile money withdrawal charges effective August 1.


“Due to a 10% Excise tax raised by government on Mobile Money withdrawal fees, we are adjusting our rates effective August 1, 2014,” MTN said in a statement to its customers on Wednesday.

Last month, finance minister, Maria Kiwanuka announced a 10% increase in mobile money while presenting the 2014/15 financial year budget.

She said the increase on withdrawals was to help government to meet the revenue target that was not met after a similar increment on mobile money deposits the previous year.

The finance ministry expects to generate about sh16 billion from the increase in mobile money fees.

Last year, 14 million people made transactions using mobile money platform, with transaction value of sh18.6 trillion.

The emergence of new mobile telephone technology and agency banking has been a key driver of the services sector over the last four years.

The mobile money platform has been a preferred form of financial transactions because it offers quick way to send and receive money and make payments, compared to banks.

Several groups have argued that the increase in mobile money fees will affect low-income earners, especially those who depend on remittances.

 

MTN raises mobile money charges

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