In his budget this year, the CS for Finance Henry Rotich introduced a 12% tax on m-pesa tariffs. Considering that m-pesa trickles down to the poorest of the poor, this will impact negatively on all the gains made on this very transformative product.
It is important to note that m-pesa perse does not transform peoples lives but as an infrastructure is a pathway to transforming peoples lives. It's this pathway in the form of paybills that the CS targeted. If transfering money to buy a commodity, save in a merry go round or other informal organizations made for the poor is made expensive, sooner than later these lesser off segments will revert to their old ways of keeping money under their mattresses or just sending money via other means which may cost the economy of the country in the long run.
My advise and opinion would be to encourage use of mobile money by reducing cost of use as the effect of use translates to better lives and a better economy
