Mobile, ATM and online banking customers in Kenya could be in for a shock as the government plans to implement an additional 10% excise duty tax for transactions in the country.

The tax, which is planned to take effect during August, is to affect all banks in the country.

And this could be the second time this year that mobile money transactions in the country are slapped with a tax.

Earlier this year, government imposed a tax on mobile money transactions, which resulted in the likes of operator Safaricom hiking its M-Pesa rates.

The Kenya Bankers Association (KBA) has explained the fees and how it could affect their customers.

“The service fees to be taxed include fees and commissions charged on money transfer services and other bank fees, charges and commissions, excluding interest,” a KBA statement has read in part.

The association has also made it clear that the duty tax is planned to be payable to the Kenya Revenue Authority.

The duty tax was expected to take effect on June 18 but was pushed forward to August. Some banks in the country; however, are contemplating backdating the fees to the first date.

Meanwhile, concerns exist among experts about the additional tax.

Speaking anonymously, a customer service officer at the NIC Bank in Nairobi told ITWeb Africa that the duty could negatively affect banking operations in Kenya.

“The bank is also feeling the effect of the tax with customers threatening to close their accounts,” she said. “Customers are not happy with this tax and we expect business to go down.”

It’s also not only mobile money transfers that could be affected by the additional tax, as internet banking transactions and global swift transfer fees may be taxed as well.