NAIROBI, Kenya, Jul 29 - You will now pay more to transact on MPESA as mobile telco Safaricom moves to implement the Finance Act.

Safaricom has announced an increase of M-PESA transaction fees from 12 to 15 per cent but slashed call and data rates.

"We will be reviewing our calls, SMS, data, fiber, and M-PESA pricing to reflect the increase in Excise duty rates on fees charged on mobile money transfer services from 12 percent to 15 percent and the decrease in Excise duty rate on telecommunications services from 20 percent to 15 percent," Safaricom said in a paid-up advertisement published on local newspapers.

The Finance Act came into effect Friday when the Court of Appeal lifted a conservatory order by the High Court blocking the Act's implementation following an application filed by activist Okiya Omtatah.

The government immediately moved to the Court of Appeal through Treasury Cabinet Secretary Prof. Njuguna Ndung'u who convinced a three-judge bench that the government was likely to be crippled if the order was not lifted.

Justices Mohamed Warsame, Kathurima M'inoti and Hedwig Omondi observed that there will be irreversible economic consequences if the order is not lifted.

"The upshot of our decision is that the application has merit and the same is allowed as prayed with the effect that the order made on 10th July 2023 suspending the Finance Act 2023, and the order prohibiting the implementation of the Finance Act 2023, be and is hereby lifted pending the hearing and determination of the appeal," the judges ruled.

The Appellate Court's decision has angered the Opposition coalition, Azimio, which plans to announce the way forward on Sunday.

The Raila Odinga-led coalition has been mobilising street protests since last month against the high cost of living which will be made worse by the Finance Act.