Sharp Daily
No Result
View All Result
Monday, June 16, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Opinion

How higher excise duty affects Kenya’s internet users

Malcom Rutere by Malcom Rutere
May 15, 2025
in Opinion
Reading Time: 3 mins read

Excise duty is a tax charged on specific goods and services. With Kenya’s growing digital economy, internet access has become more of a necessity rather than luxury. From virtual classrooms in schools and universities to mobile banking for individuals and small businesses, internet connectivity drives productivity and innovation. Despite this, the cost of staying connected has become a burden for a lot of people in the country, due to the recent increase in excise duty on internet services to KES 9.0 bn. The government signifies this move as part of its strategy to raise more revenue to fund its operations. As much as this may sound viable in theory, the harsh reality lies on the implications that will affect households, small businesses and the youth.

Excise duty on internet services has been on an upward trajectory over the recent years, for instance, where it increased by 5.0% to 20.0% in 2021 from 15.0% as stipulated in the Finance Act of 2021. The latest adjustment, which now pushes the total collections from this tax to KES 9.0 bn, effectively means higher costs for mobile data, broadband subscriptions, and even bundled services like voice-data plans. Mobile internet is ranked as the most accessible form of connectivity in the country, with over 26 million active data subscribers using it for everything ranging from school work to their business operations. It is clear that the rise in internet prices will have a negative widespread impact on a lot of people.

First, this hike in internet prices will affect the students and the education sector in general. With the rapid rise of e-learning tools such as MwalimuPlus and Google Classroom, accessible internet has become an important asset in the modern-day education curriculum. However, rural students already face challenges including lack of devices, poor network coverage, and inadequate electricity. Adding cost pressure through taxation may widen the educational gap. Second, Kenya’s SME sector, which is responsible for contributing about 34.0% of Kenya’s Gross Domestic Product and 91.0% of the total new jobs generated annually, employs approximately 15 million people directly. From online entrepreneurs to transport applications such as Uber and Bolt, the increased internet costs directly affect business performance. Higher operational costs may force businesses to either pass on the expense to customers or scale down digital services, both of which hinder competitiveness in an already challenging economy.

While taxation is an integral tool in raising revenue to fund public services, it must be accommodating and equitable to all parties. Stakeholders in the digital sector have proposed alternatives such as progressive taxation where basic data packages could be zero-rated or taxed less than premium bundles. Second, tax holidays for schools and small businesses which will help in promoting innovation and inclusion. Installing public Wi-Fi in underserved areas especially in schools and libraries.

RELATEDPOSTS

Rights groups urge Kenyan government to avoid internet shutdowns during protests

June 24, 2024
KRA's Digital Service Tax

Government will have a Tough Time Achieving its Projected Excise Duty Target

July 28, 2023

As Kenya seeks to expand its tax base and bridge fiscal gaps, it must be careful not to tax away opportunities. Access to affordable, reliable internet is more than a conveniencee since it’s a catalyst for economic growth, job creation, and social equity.

Previous Post

Privatization of sugar millers sparks debate

Next Post

May Momentum: Planting seeds for financial growth with CMMF

Malcom Rutere

Malcom Rutere

Related Posts

Opinion

Kenya’s tech startups, fueling a new era of digital wealth

June 16, 2025
Opinion

Kenya’s youth-led entrepreneurship: A pathway to inclusive growth

June 16, 2025
Opinion

Opinion: Flashy handouts not empowerment, we need real solutions.

June 16, 2025
Economy

Opinion: Austerity wrong medicine for Kenya’s economy.

June 16, 2025
Opinion

Innovation in finance: How Kenya’s financial sector is evolving

June 13, 2025
Opinion

The false middle class: Chasing comfort in an economy of survival

June 13, 2025

LATEST STORIES

Kenya’s tech startups, fueling a new era of digital wealth

June 16, 2025

Kenya’s youth-led entrepreneurship: A pathway to inclusive growth

June 16, 2025

Your First Investment should be an emergency fund with Cytonn Money Market Fund

June 16, 2025

Opinion: Flashy handouts not empowerment, we need real solutions.

June 16, 2025

Opinion: Our monetary gains must be matched with fiscal reforms

June 16, 2025

OPINION: Human rights must be at the top of Bottom up economic model

June 16, 2025

Opinion: Austerity wrong medicine for Kenya’s economy.

June 16, 2025

Innovation in finance: How Kenya’s financial sector is evolving

June 13, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024