Following the Finance bill passed by President Uhuru Kenyatta recently, the cost of mobile phone services, including payments, is set to rise in Kenya.
This is according to an analysis by Citi Research, who says the rise in the cost of mobile phone services can only be averted if the service providers absorb the cost because of their intense rivalry.
“There may be a delay in price adjustments for competitive reasons, which would negatively affect revenue and earnings. Demand may also be weaker than we assume, should prices be adjusted,” says Citi.
Already, one of the service providers known as Jamii Telecom has notified its subscribers that the tariffs will be reviewed in line with the tax changes.
Image Credit: Bizna-Kenya