Banks impose new charges on money transfer

NAIROBI, KENYA: Commercial Bank of Africa customers will have to part with 0.05 per cent in excise duty on bank transfers of Sh500, 000 and above.

The directive which is in line with the Finance Bill 2018 will see the lender join other institutions like Equity in enforcing the charges.

In a newspaper advert, Equity Bank on Monday said it will charge 0.05 per cent on bank transfers of Sh500,000 and also increase charges on mobile transactions from the current ten per cent to 12 per cent.

Bankers have already challenged the government’s intention to impose new tax on bank transaction involving money transfers of Sh500,000 and above.

The Kenya Bankers Association (KBA) through lawyer Kenneth Fraser argued that the new requirements for 0.05 percent excise duty on money transactions contained in the Finance Bill 2018 is illegal and unconstitutional.