Telkom, one of Kenya’s telecommunications companies, has announced an increase in voice, data and SMS charges due to a recent jump in Excise Duty taxes from 10% to 15%.
The telco has been working tirelessly to grow its brand, competing with the likes of Safaricom and Airtel, the country’s top two communication service providers respectively.
In fact, over the past few years, Telkom has embarked on an aggressive marketing campaign to grow its subscriber base. The company has been offering some of the most competitive rates in the Kenyan market in terms of voice, SMS and data charges.
Now Telkom, along with Airtel, have joined Safaricom in increasing voice and SMS charges by 30 cents and 10 cents respectively.
“When we launched our new consumer-facing brand sixteen months ago, we made a commitment to you; to the nation: that we would connect all those that keep Kenya on the move,” Telkom Chief Executive Officer, Aldo Mareuse told Kenyan consumers following the announcement.
“This remains our brand promise to you, as Telkom continues to play its role, to provide Kenyans with quality as well as reliable products and solutions that meet and complement their communication needs,” he added.
“Our commitment to you is important to us; Telkom’s values challenge us to always keep you in the room when taking any decision that may impact your day-to-day use of our services,” Mareuse continued.
The assent of a Kenyan decree dubbed the Finance Act 2018 into Law has resulted in a review of taxes that has recently affected a variety of services in Kenya.
More specifically, Excise Duty tax on Voice, SMS and Internet Data services has been reviewed to a rate of 15%, up from 10%.
Telkom stated that with these dynamics, and having taken time to extensively deliberate on how best to address these changes, a review of their costs was inevitable.
“Effective midnight, Tuesday, October 23, 2018, our headline prices for Mobile Prepaid Voice and SMS will increase by 30 cents and 10 cents respectively. This translates to a revision of our costs as follows: Off-net calls at Ksh3.30cts per minute, on-net calls at Ksh2.30cts per minute and SMS (any-net) at Ksh1.10cts per SMS,” Mareuse explained.
“In addition, our Pay-As-You-Go (PAYG) price for Mobile Data will also see an increase of 30 cents per MB; this translates to a new Pay-As-You-Go (PAYG) price of Ksh4.30cts. However, Mobile Data Bundle prices will not be affected,” he said.