Safaricom to give customers extra airtime for every top up as VAT reduction takes effect

Safaricom has effected the 2% reduction in VAT ordered by President Uhuru Kenyatta as part of the measures to cushion Kenyans from the economic effects of the coronavirus pandemic.

The reduction of Value Added Tax from 16% to 14% took effect on April 1.

"Accordingly, we are reviewing all our product and service offerings as below to the effect the new 14% VAT, effective April 2020," Safaricom said on Wednesday.

All prepaid customers will receive 2% extra airtime on every period recharge, reflecting the 14% VAT and all home fibre customers will get back 2% the cost of the package as a credit to their Home Fibre account.

For instance, a customer who tops up Sh100 will receive Sh102 airtime and customers on the Sh 2,900 Bronze package will get Sh58 credit which will be used for their monthly payment.

Pricing for all devices including smartphones at all Safaricom Shops and on Masoko have also been reduced to reflect the 14% VAT.

"Pricing for all Personal Postpaid, Fibre for Business and for all Corporate Postpaid product and services including Zidisha Plus, Cloud, Security, Collocation and IOT have bee reduced to reflect 14% VAT and shall be reflected in the next monthly invoice," Safaricom further stated.

NCBA Group and Safaricom had introduced various measures to offer financial relief to their M-Shwari customers.

For the next 30 days, all M-Shwari late payment sanctions including rollover fees will be deferred by 30 days.

CRB listing of M-Shwari customers will also be suspended for the next 90 days.