• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Banking & Finance

Kenya: Borrowers feel tax pinch as banks review cost of loans

4 years ago
in Banking & Finance, highlights, Home, home-news, latest News
1 min read
0 0
0
80
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

NCBA and KCB have become the first lenders to increase the cost of their loans after a 20 percent excise duty tax on fees and commissions earned on loans took effect on July 1.

KCB Group in text messages to its customers on Friday afternoon said that loans advanced through the KCB M-Pesa will now attract a fee of 8.64 percent. This is up from 7.35 percent.

The NCBA Group said that all loan-related fees and commission will be subjected to the 20 percent excise tax.

The increase of the loan fees comes a day after President Uhuru Kenyatta assented into law the re-introduction of the 20 percent tax on all fees and commissions earned on loans, prompting banks to pass the increased cost to borrowers.

“Dear customer, following the assent of the Finance Act 2021 that has re-introduced a 20 percent excise duty on loan fees, the revised KCB M-Pesa loan fee is now 8.64 percent,” KCB Group told its customers on Friday.

The 20 percent excise duty on loan fees will see banks pay the Kenya Revenue Authority more than Sh7 billion annually, even as credit becomes costly for homes and businesses as lenders transfer the burden to borrowers.

Banks had opposed the tax saying that it would force them to pass the cost to borrowers, increasing the burden on borrowers already grappling with adverse effects of the coronavirus-induced hardships.

RelatedPosts

President Mahama in Singapore to Court Investment and Deepen Bilateral Ties

GRA Says Cedi Rebound Cuts Government Revenues by 30%

Here’s Why Uber’s CEO Believes China is Winning the EV Race

The 20 percent excise tax was introduced in 2018, triggering an increase in the cost of bank services such as transfers — both local and international, over-the-counter withdrawals as well as ATM transactions and account operating fees.

Source: businessdailyafrica
Via: norvanreports
Tags: banks review cost of loansKenya Revenue AuthorityNCBA and KCBre-introduction of the 20 percent tax on all fees and commissions earned on loans
No Result
View All Result

Highlights

Appiah Adomako Writes: Ghana Needs a Surgical Approach to Minimum Investment Capital Requirement

Serie A: Jonathan David Shines on Serie A Debut as Juventus Overcomes Parma

La Liga: Mbappe, Vini Jnr on Target as Real Madrid Beat Real Oviedo

Gold Fields CEO Flags Illegal Mining; Backs Ghana’s Push for Fairer Mining Returns but Stresses Investor Appeal

MTN Ghana to Offload GHS 2.83 Million Worth of Shares on the Open Market

CSO Budget Forum Calls for Urgent Reforms in Tax Compliance in Ghana

Trending

Business

President Mahama in Singapore to Court Investment and Deepen Bilateral Ties

August 25, 2025

President Mahama in Singapore to Court Investment and Deepen Bilateral Ties President John Dramani Mahama has begun...

A customer counts Ghana cedi banknotes at the Nima market in Accra, Ghana on Monday, March 11, 2024

GRA Says Cedi Rebound Cuts Government Revenues by 30%

August 25, 2025

Here’s Why Uber’s CEO Believes China is Winning the EV Race

August 25, 2025

Appiah Adomako Writes: Ghana Needs a Surgical Approach to Minimum Investment Capital Requirement

August 25, 2025

Serie A: Jonathan David Shines on Serie A Debut as Juventus Overcomes Parma

August 25, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.