I hear you, Lynn.
But Somalis, with all their wisdom, choose cash for a reason.
Others, with all their wisdom, choose M-Pesa for a reason.
There is no need to sensationalize or criticize the Eastleigh community over that.
People are free to accept the means of payment that is most convenient for their businesses.
• Some businesses prefer cash only.
• Others prefer M-Pesa only.
• Others accept both.
Cash is the only legal tender in Kenya. Digital money derive its value and legitimacy from cash.
Accepting cash is not illegal. Neither is preferring M-Pesa.
Different people have different money preferences.
KRA has had legal mechanisms and tools for taxing cash businesses since 1995. Long before M-Pesa even existed.
M-Pesa came the other day. It found KRA right here collecting taxes.
KRA should use those same mechanisms to tax businesses that choose to transact using Kenya's only legal tender.
Let us all, including KRA, support our only legal tender.
I honestly don’t think we’re ready for this Eastleigh conversation.
Few Observations,.
You buy something in the majority of those shops and they want cash. If you don’t have cash, they have their own MPesa agents they tell you to withdraw from. They then make a quick call to the agent to confirm the withdrawal before releasing your goods.
That way, they never have to explain their cash flow, but you may one day have to explain yours to the taxman.
We’re talking about a multi billion shilling industry with very little transparency, accountability or visibility into how money moves.
And as long as they remain the middlemen, pay zero tax, sell “counterfeit goods” the government is comfortable
But how dare you use the same business model, open your own wholesale operation and bring your own goods through the port?…..