Nairobi, Oct. 28 -- Businesses and households face higher digital payment costs after banks and fintech companies began adding a 16 percent value added tax (VAT) to fees charged for processing electronic payments, settling card transactions and operating payment gateways.

A spot check by this publication established that banks and payment companies have configured their systems to reflect the new VAT levies on digital payment transaction fees which took effect from July.

Published by HT Digital Content Services with permission from Business Daily....