As of today, you may have already heard that the government slashed the Value Added Tax from 16 percent to 14 percent. This was among other measures announced by the GoK aimed at reducing the impact of the current Covid-19 crisis in the country.
In line with this directive, Safaricom has reviewed its product and service offerings to reflect the new 14 percent VAT.
Here’s how the VAT reduction applies to the end consumer;
- Prepaid customers will get 2 percent extra airtime on every recharge e.g For Ksh 100 airtime recharge, you will be awarded Ksh 2 bob extra to make it Ksh 102.
- Home Fibre customers will get a 2 percent cash back on the cost of their package. Bronze customers who pay Ksh 2900 per month will be credited with 58 bob in their Home Fibre account that will be used in part to pay the next monthly subscription.
- Other customers either those on personal Postpaid plans, Fibre for business and Corporate PostPaid products and service will see a change in adherence to the new VAT in their next monthly invoice, according to the company.
- Safaricom has also reduced the prices of its smartphones across all Safaricom shops and its e-commerce platform Masoko to reflect the new VAT.
Other than the new 14 percent VAT implementation which was effective starting April 1, the telco has also lifted transaction fees on all M-Pesa transactions below Ksh 1000.