03 February 2023

Safaricom wants to benefit from tax exemptions in Kenya, including the capital gains tax, which increases from 5% to 15% in 2023, in order to carry out its project of separation from its M-Pesa mobile banking.

Local media reports that Safaricom wants to avoid being imposed the payment of taxes in the event of a split with M-Pesa by the Kenya Revenue Authority (KRA).

Peter Ndegwa, chief executive of Safaricom, has been reported as saying that he would seek tax waivers from the government as part of the initiative. However, Kenya’s current president William Ruto has promised to be rigorous in the collection of tax revenues. The tax authority expects to collect nearly 500 billion Kenyan shillings by June 2023, and to increase this amount over the next few years.

Safaricom’s request for tax exemptions is filed, although the company’s board has yet to approve the spin-off of Safaricom’s telecommunications business from its banking business.