President William Ruto has confirmed that the Finance Act 2026 will not introduce new taxes on M-Pesa transfers, airtime, or data. The announcement, made on June 24, 2026, provides clarity and relief for millions of Kenyans and the country's dominant mobile money operator, Safaricom, after weeks of speculation about potential fiscal measures targeting the digital economy.
The decision aligns with a recent parliamentary move to support the existing value-added tax exemption on mobile money transfer fees. Members of Parliament backed the exemption, arguing that taxing these transactions would disproportionately affect low-income citizens and undermine financial inclusion efforts. M-Pesa, launched by Safaricom in 2007, has become a foundational piece of Kenya's economic infrastructure, used by tens of millions for everything from paying bills to receiving salaries and sending remittances.
"No new tax on M-Pesa transfers, airtime or data," President Ruto stated, according to a report by The Horizon Wire.
This policy continuity comes as Safaricom continues to expand M-Pesa's functionality beyond simple peer-to-peer transfers. The service is evolving into a broader financial and lifestyle platform. According to a report from tech-ish.com, Vodacom, a major shareholder in Safaricom, has been pushing its 'My OneApp' super app strategy, which integrates M-Pesa with over 221 mini-applications. The platform reportedly reached 9.4 million users, demonstrating the deepening integration of financial services with daily commerce and service delivery.
The government's stance reflects a balancing act between raising revenue and fostering a digital ecosystem that drives economic activity. Previous attempts to impose taxes on digital transactions have met with significant public resistance in Kenya, where mobile money penetration is among the highest in the world. The parliamentary support for the VAT exemption, as reported by TechTrendsKE, underscores a political consensus on the sensitivity of the issue.
For Safaricom, the tax certainty is a positive signal as it invests in transforming its cash cow into a more diversified digital hub. The growth of super-app ecosystems like My OneApp, which bundles payments with services for shopping, travel, and entertainment, represents the next frontier for African fintech. Maintaining a favorable tax regime on core transactions like transfers and airtime purchases is seen as crucial for sustaining user growth and engagement on these platforms.
President Ruto's announcement effectively closes a chapter of uncertainty regarding the 2026 finance bill's impact on digital services. It allows businesses and consumers to plan without the immediate threat of increased costs on essential digital transactions, which have become even more critical in the post-pandemic economy. The decision is likely to be welcomed by the telecommunications and fintech sectors, which have long argued that light-touch regulation on foundational services is key to driving further innovation and inclusion.