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Mobile Money transactionsEffective August 1, there is going to be an increment in Mobile money withdraw charges. This follows a 10% Excise tax raise by government on Mobile Money withdrawal fees.

Last month, finance minister, Maria Kiwanuka announced a 10% increase in mobile money while presenting the 2014/15 financial year budget.

The increase on withdrawals was to help government to meet the revenue target that was not met after a similar increment on mobile money deposits the previous year.

The finance ministry expects to generate about sh16 billion from the increase in mobile money fees.

Last year, 14 million people made transactions using mobile money platform, with transaction value of sh18.6 trillion.

The emergence of new mobile telephone technology and agency banking has been a key driver of the services sector over the last four years.

The mobile money platform has been a preferred form of financial transactions because it offers quick way to send and receive money and make payments, compared to banks.

Several groups have argued that the increase in mobile money fees will affect low-income earners, especially those who depend on remittances.

Credit: New Vision