Taxation of digital financial services (DFS) in Africa

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Kenya

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Total population : 54.03 M. (2022)
Working age (15-64) population : 32.05 M. (2022)
Mobile money accounts1: 73.1 M. (2022)
Transaction values (% GDP) : 56.78% (2021)

1Note: Responses are from participants aged +15


Changes to specific taxes on digital financial services in Kenya

Sources

  1. Finance Act 2012, No. 57, fifth Schedule, Part I, Section 4.
    Kenya implements a 10 per cent excise duty on fees charged for money transfer services by mobile phone service providers, banks, money transfer agencies and other financial service providers.
  2. The Finance Act, 2018. Section 32.
    Kenya increases the rate of the money transfer fees excise duty to 12 per cent for transfer services by mobile phone service providers, while the rate is fixed at 20 per cent for other financial institutions.
  3. The Finance Act, 2023, No. 4, Sec. 47(b)
    Kenya applies a unique rate for the excise duty on money transfer fees fixed at 15% for mobile money and ban transactions.

Mobile money use and accounts

Evolution in the usage of mobile money
(source: IMF, Financial Access Survey (FAS) (2023) )

Sorry, the graph is not available for this device.

Evolution in mobile money and financial institution accounts
(source: World Bank, Global Findex Database (2021) )

Disparity in Digital Financial Service usage between wealthier and poorer segments of the population
(source: World Bank, Global Findex 2021)

Made or received digital payment (% of each group)

*Note: responses are from participants aged +15

Mobile money accounts (% of each group)

*Note: responses are from participants aged +15

Financial institution accounts (% of each group)

*Note: responses are from participants aged +15

Digital payments and accounts by user group
(source: World Bank, Global Findex 2021)

Adults making or receiving digital payments

Adults with a mobile money account

Adults with a financial institution account

Download the factsheet

Last update : 31/01/2024


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