A mobile phone user. Kenya has been working on policies that give citizens, businesses, and organisations access to digital economy, but the high cost of internet and telephony is threatening such gains. FILE PHOTO | NMG Kenya holds a special place in the ‘Africa Rising’ narrative with respect to broadband and mobile connectivity, commensurate with the continent’s economic impact.
According to the Kenya National Bureau of Statistics, Kenya has seen its Information and Communications Technology (ICT) sector grow by an average of 11 percent annually since 2016.
This has made the sector a significant source of economic development and job creation with multiplier effect in almost every sector of the economy.
The government has been clear on its intentions to transform Kenya into a knowledge-based economy — where every citizen, enterprise and organisation has digital access and the capability to participate and thrive in a digitised economy, as documented by Kenya’s Digital Economy Blueprint.
Unfortunately, consolidated gains so far are at the risk of being lost owing to an unpredictable policy and regulatory regime. The net effect is that of individuals and business entities suffering financially punitive impacts, in the guise of financial obligations — a case of the government giving with one hand and attempting to mask the fact that it continues to take away with the other.
The recent assent into law of the Finance Bill, 2021 has effected a five percentage point increase in telephony and Internet services, from 15 percent to 20 percent. The cost of communicating is expected to go up by another Sh0.30 which is an unnecessary burden on the ordinary Kenyan who is already over-burdened with many other cost increases.
SEARCH FOR JOBS
This five percentage point increase in communication costs marks the second time in its second term that the government of the day is meddling with such key services that were promising the public in the search for jobs.
In the Finance Act, 2018, it also increased excise duty from 10 percent to 15 percent on telephone and internet services.
Now, telecoms networks have been compelled to pass these costs onto the consumer. I take note of telcos that many subscribe to and is trying to make access to communication services much easier by the introduction of products to enhance access to calling and mobile internet.
Unfortunately, efforts of telcos are being hurt by such tax reviews.More costs to the customer will make day-to-day communication a luxury in […]
