RE: TAXATION OF FEES AND INTEREST
Following the enactment of the Finance Act 2021 by the Government of Kenya, we wish to inform you that with effect from 1st July 2021, the following fees are subject to Excise Duty at 20%:
1. Bridging/Consolidation Fee
2. Bank Loan Bailout Fee
3. Home Appliances Processing Fee
4. M-Jisort Default Penalty
5. Demand Savings Withdrawal Fee
Further, interest earned on Demand Savings Account will be subject to withholding tax at 5%.
Members will receive their payments net of these taxes where applicable.
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