Review of Headline Prices by Telkom
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. 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.
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. The assent of the Finance Act 2018 into Law has resulted in the review of taxes that affect our services to you. More specifically, Excise Duty tax on Voice, SMS and Internet Data services, has been reviewed to a rate of 15%, up from 10%.
With these dynamics, and having taken time to extensively deliberate on how best to address these changes, a review of our costs is 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. 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.
Moreover, Mobile Postpaid Services will also reflect the 15% Excise Duty tax, up from 10%, whereas our Broadband and Fixed Voice Services will see the introduction of 15% Excise Duty tax.
Although these additional taxes will lead to an increase in the cost of Voice and Data services to our customers, Telkom remains committed to deliver best value to them.