Kenya: Bankers Warn Proposed Mobile Money VAT Could Shrink Tax Base

The Kenya Bankers Association (KBA) has pushed back against a proposal in the Finance Bill 2026 seeking to impose a 16 percent Value Added Tax (VAT) on fees charged by digital payment and money transfer platforms, warning that the move could reverse gains made in financial inclusion and digital payments.

Speaking during public participation hearings organized by the Kenya Private Sector Alliance (KEPSA) before the National Assembly Finance Committee, KBA Chief Executive Officer Raimond Molenje…