An Eastleigh business owner has raised concerns over alleged M-Pesa reversal scams targeting traders.
In a statement shared online, the Eastleigh business owner argued that the reversals by the buyers are daylight robbery.
According to the business owner, the M-Pesa reversal fraud scheme is why most businesses in Eastleigh strictly require the payment of the goods to be made only through cash, citing the loss of stock and money to scammers.
“My fellow Kenyans, enough with this. These reversal scammers are thieves. They pay via M-Pesa, carry the goods, then call Safaricom to reverse. Pure daylight robbery. That’s why serious business people in Eastleigh tell you to withdraw and pay cash; they’re tired of losing stock and money to conmen,” part of the statement read.
Further, the business owner has urged businesses to name the criminals involved in reversal schemes rather than turning the fraud into tribal accusations.
Also Read: KRA Moves to Fix eTIMS Compliance Gaps in Eastleigh Businesses
Publics on M-Pesa Reversal Scams
Following the Eastleigh business owner’s statement on the money reversal, members of the public had different opinions, with some supporting her argument and others dismissing it as claims and tax-evasion plots by Eastleigh businesses.
Hilda Kibor, a member of the public, advised that the business owners should use different payment methods such as business Tills and Pochi la Biashara to avoid such fraud.
She, however, questioned the claims of M-Pesa reversal at Eastleigh on whether it is only in the Eastleigh businesses that customers want to reverse the payments made.
With some members supporting alternative methods for making digital money transfers, Antony Gakuru noted that Eastleigh business owners are resistant due to a lack of accountability and the taxes involved.
“Why don’t you use ‘Buy Goods’ or ‘Paybill ‘? Nobody can reverse these two. It’s only that you don’t want to be accountable and pay taxes,” Gakuru stated.
In response to the use of Till numbers and Paybill, Aidrus Ismail explained that the modes of transfer service loans and build credibility, which most Eastleigh business owners do not use, hence the need for a cash-only payment mode.
Abdirashid Mahmoud, in support of the cash payment in businesses, stated that traders are at liberty to ask for payment by any mode of exchange they adding that M-Pesa withdrawal also generates commissions.
Also Read: Safaricom Explains Why M-Pesa Transaction Fees Are Not Reversed
KRA Tax Compliance on Eastleigh Businesses
Following the cash payment policy by Eastleigh traders that leads to tax evasion, the Kenya Revenue Authority (KRA) leadership has collaborated with the members of the Eastleigh Business District Association (EBDA) to address concerns about the eTIMS compliance gaps in Eastleigh businesses.
On April 13, the tax authority held a meeting with EBDA to discuss the adoption of eTIMS due to business non-compliance and the limited issuance of invoices in Eastleigh. According to the Deputy Commissioner for Tax Base Expansion, Esther Wahome, KRA had rolled out a USSD solution *222#5# to ease tax registration, eTIMS onboarding, tax payment, and filing.
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