Connect with us

Business

MTN’s Return to Airtime Lending Highlights Nigeria’s Regulatory Tightrope

Published

on

Spread the love

MTN Nigeria is preparing to restore its Xtratime airtime lending service following the suspension of controversial digital lending enforcement rules, marking another twist in the growing battle between telecom operators, regulators, and digital service providers over control of Nigeria’s fast-expanding consumer credit market.

The decision places MTN alongside Airtel and Globacom, both of which have already resumed airtime advance services after the Federal Competition and Consumer Protection Commission (FCCPC) paused enforcement of its Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, widely referred to as the DEON Regulations.

For millions of Nigerians, airtime lending is more than a convenience feature. It functions as a form of microcredit woven into daily communication habits, allowing subscribers to continue making calls, browsing the internet, or accessing digital services before their next recharge.

MTN’s Xtratime product sits at the intersection of telecommunications and financial services, an increasingly important overlap across African markets where mobile operators are evolving into broader digital platforms offering payments, credit, insurance, and merchant services.

“The Federal Competition and Consumer Protection Commission (FCCPC) has suspended the enforcement of DEON. To that extent, we will reinstate the service,” a company insider told TechCabal.

The company’s shift in position is notable because MTN had previously signalled a more cautious approach during its May earnings call, arguing that the court order restraining enforcement of the regulations did not automatically invalidate the rules themselves or compel operators to resume services.

“In terms of what needs to happen for us to resume airtime advance service, there are essentially two conditions,” Tobechukwu Okigbo, MTN Nigeria’s chief corporate services and sustainability officer, said during the earnings call. “First, we would require either a court ruling that sets aside the regulations empowering the FCCPC to license, which has not happened, or a clear directive instructing us to reinstate the service.”

READ ALSO  African Fintechs Are Making the Gulf Their Next Big Move

The FCCPC’s decision to suspend enforcement followed an interim ruling by the Federal High Court in Lagos after legal action initiated by the Wireless Application Service Providers Association of Nigeria (WASPAN), an industry body representing value-added service providers.

At the centre of the dispute is a larger regulatory question increasingly shaping Africa’s digital economy: who should control fast-growing digital lending ecosystems that blur the traditional boundaries between telecoms, fintech, and consumer finance?

Nigeria’s regulators have spent the past several years trying to tighten oversight of digital lenders following widespread complaints involving aggressive debt recovery tactics, hidden fees, consumer harassment, and data privacy concerns. The FCCPC has previously shut down or sanctioned multiple digital loan providers over alleged consumer rights violations. Federal Competition and Consumer Protection Commission

Yet airtime lending occupies a more complicated space than standalone loan apps.

Unlike many digital lenders, airtime advance services are deeply integrated into telecom infrastructure and often involve very small, short-duration transactions tied directly to customer usage behaviour. For telecom operators, these products are not just financial tools; they also help sustain network activity, customer retention, and mobile data consumption.

According to MTN executives, Xtratime-related fees contribute around 3% of company revenue, while associated airtime and data usage accounts for a low-20% share of overall airtime distribution.

Despite that contribution, MTN insists the temporary suspension did not significantly damage overall demand.

“There was a short-term impact on consumption patterns, which lasted only a few days,” MTN Nigeria chief executive officer Karl Toriola said during the earnings call. “However, as time progressed, customers adapted. They either shifted to self-funded usage or found alternative ways to manage short-term needs.”

READ ALSO  Why Kalonzo Musyoka Is Coming To Washington, DC, Maryland and Virginia

That observation offers an important insight into the changing economics of telecom consumption in Nigeria. As smartphone penetration rises and digital services become more embedded in everyday life, telecom operators are increasingly trying to diversify beyond traditional airtime revenue toward fintech, enterprise services, mobile money, and digital infrastructure.

MTN Nigeria generated ₦5.2 trillion in revenue in 2025 and is projecting further growth in 2026, underscoring how large telecom operators are becoming some of the most influential digital economy players on the continent.

The broader regulatory debate also reflects a familiar challenge facing African policymakers: how to protect consumers without stifling innovation in sectors evolving faster than regulatory frameworks can adapt.

Similar tensions have emerged across African markets in mobile money, buy-now-pay-later services, crypto regulation, and digital banking. Regulators are under pressure to increase oversight while avoiding measures that could slow financial inclusion or discourage investment in digital infrastructure.

Nigeria’s digital lending market is particularly significant because of the country’s scale. With millions of underbanked consumers and inconsistent access to formal credit, telecom-based lending products often fill gaps left by traditional financial institutions. According to the World Bank Global Findex Database, digital financial services continue to play a growing role in expanding access to financial tools across emerging markets.

For telecom operators, the outcome of the current dispute may shape how aggressively they pursue future fintech expansion.

The temporary pause in enforcement has provided breathing room, but it has not resolved the underlying regulatory uncertainty. MTN’s willingness to restore Xtratime suggests the company believes the operational and competitive advantages of airtime lending still outweigh the legal and compliance risks, at least for now.

READ ALSO  Unleashing Innovation: Meet the Galaxy S25 Edge

What happens next could influence far more than airtime borrowing. It may help define how Africa’s largest telecom operators evolve into financial services ecosystems in one of the world’s fastest-growing digital economies.

Further reading:

 

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Kenya Airways Gets Sh45.4 Billion Government Financing Boost as Turnaround Plan Advances

Published

on

Spread the love

NAIROBI, October 9, 2026 — Kenya Airways is set to receive US$350 million (approximately Sh45.4 billion) in government shareholder financing after Cabinet approved the funding to address urgent operational costs and support the national carrier’s recovery.

The funding, announced following a Cabinet meeting at State House in Nairobi, is intended to help the airline meet pressing financial obligations, including aircraft maintenance and efforts to return grounded planes to service.

The approval marks a fresh intervention by the government, Kenya Airways’ largest shareholder, as the airline works to restore fleet capacity, strengthen its finances and pursue potential investment partnerships.

According to Reuters’ report on the Cabinet decision, the financing will be released in instalments under National Treasury oversight, with a repayment period of up to 10 years. The arrangement also allows for possible conversion into equity, subject to the required approvals.

Government targets aircraft availability and financial stability

A key priority for the new funding is to address aircraft maintenance requirements that have constrained the airline’s operational capacity.

Returning grounded aircraft to service could enable Kenya Airways to increase available capacity and improve operational flexibility. However, the Cabinet approval does not establish when individual aircraft will return to service or how quickly the funding will translate into additional flights.

The airline has previously identified global supply-chain disruptions and shortages of critical spare parts as factors affecting aircraft availability and operational reliability.

In its August 2026 financial results announcement, Kenya Airways reported that revenue increased by 9 per cent to Sh81 billion in the six months ended June 30, 2026, despite operating with 9 per cent less capacity.

READ ALSO  Airtime Lending Returns in Nigeria After Court Halts FCCPC Enforcement

The airline attributed the operating environment’s challenges partly to higher fuel costs and supply-chain constraints. It reported a loss after tax of Sh16.1 billion for the half-year, compared with Sh12.2 billion in the corresponding period a year earlier.

The latest financing is therefore intended to address immediate cash requirements while supporting the broader effort to improve fleet availability and financial resilience.

Sh122 billion in government loans targeted for restructuring

Beyond the fresh financing, Cabinet endorsed a proposal to convert approximately Sh122 billion in existing government loans, together with accrued interest, into an equity-qualifying tradable instrument.

The proposed restructuring is designed to strengthen Kenya Airways’ balance sheet and potentially improve its ability to attract new capital.

The measure is significant because the airline has been seeking strategic investors while considering options to restructure its debt and support its longer-term recovery.

However, the proposed conversion has not been completed. It remains subject to the necessary corporate, shareholder and regulatory approvals.

The government has not, through the reported decision, established that the new financing will automatically become equity or that prospective investors have committed funds under the arrangement.

A carrier under pressure to restore capacity

Kenya Airways remains an important link between Kenya and regional and international markets, supporting passenger travel, cargo transport, tourism and trade.

Its financial performance has nevertheless been affected by operating costs, aircraft availability challenges and the need to maintain its fleet.

The airline reported a net loss of Sh17.2 billion for the year ended December 2025, according to its 2025 annual report.

The government has framed the new funding and proposed debt restructuring as components of the carrier’s longer-term turnaround plan. The stated objective is to address immediate obligations while creating room for future capital raising.

READ ALSO  Why Kalonzo Musyoka Is Coming To Washington, DC, Maryland and Virginia

The extent to which the intervention improves the airline’s financial position will depend on how the funds are deployed, the pace of aircraft restoration, operating-cost pressures and progress on the proposed balance-sheet restructuring.

Implementation remains subject to approvals

The Cabinet decision authorises a financing arrangement, but it does not by itself complete every step required to implement the measures.

The National Treasury is expected to oversee the release of the funds in tranches, while the proposed conversion of existing loans must proceed through the required approval processes.

Further details on the disbursement schedule, aircraft maintenance timelines and implementation of the debt restructuring will be important in assessing the impact of the intervention.

For now, the Sh45.4 billion financing provides Kenya Airways with an approved source of additional shareholder funding as it seeks to restore aircraft capacity, meet urgent obligations and advance its turnaround strategy.

Continue Reading

News

Meet the Lawyer Who Rejected Chivayo’s US$350,000 Gift

Published

on

Spread the love

Zimbabwean lawyer Advocate Dr Lewis Uriri has rejected a multimillion-shilling gift package from businessman Wicknell Chivayo, saying accepting the offer could compromise—or create the appearance of compromising—the independence expected of a legal practitioner.

Chivayo had announced plans to give Uriri a new 2026 Range Rover Sport Autobiography valued at about US$250,000, together with US$50,000 for fuel and another US$50,000 for Uriri’s wife.

Uriri declined the entire package.

Who Is Lewis Uriri?

Uriri is a Senior Counsel practising at Zimbabwe’s independent referral Bar and heads chambers at The Temple Bar in Harare.

According to Uriri’s professional profile, his practice covers commercial and corporate law, investment disputes, constitutional litigation, civil liberties and international arbitration.

He is also the founding president of the Zimbabwe Inns of Court and has been involved in legal education and professional training.

His international arbitration credentials include designation to the panels maintained by the International Centre for Settlement of Investment Disputes (ICSID).

Uriri began his legal career at Honey & Blanckenberg before becoming a partner at the firm. He later left private practice and joined Zimbabwe’s independent Bar.

He has also taught law at the University of Zimbabwe and has been involved in advocacy training and professional legal education.

Uriri’s Work in Politically Sensitive Cases

Uriri has represented clients in several high-profile Zimbabwean legal disputes.

 

View this post on Instagram

 

A post shared by ZANUPF 2026 (@zanupf__2026)

In 2018, he was part of President Emmerson Mnangagwa’s legal team when opposition leader Nelson Chamisa challenged the presidential election result. Contemporary reporting identified Uriri among Mnangagwa’s lawyers in the case, which was ultimately dismissed by Zimbabwe’s Constitutional Court.

READ ALSO  Traditional Phone Calls Are Fading Fast as WhatsApp and OTT Apps Take Over Global Voice Traffic

Uriri has also represented Sengezo Tshabangu in litigation connected to the recall of opposition legislators and councillors affiliated with the Citizens Coalition for Change.

In one of the cases, Zimbabwe’s High Court barred recalled CCC candidates from contesting subsequent by-elections under the party’s name, according to reporting by CITE.

Despite his involvement in politically significant cases, Uriri’s professional profile describes a practice extending well beyond politics, including commercial transactions, constitutional law, investment disputes and international arbitration.

Why Uriri Rejected the Gift

The proposed gift came as a surprise to Uriri.

In his response to Chivayo, the lawyer said the two men had last spoken in June 2024 and that he had performed no professional work for Chivayo since then.

Uriri said any previous legal services had been performed in his professional capacity and paid for in full.

His concern was therefore not an outstanding legal bill but the professional implications of accepting a substantial personal gift after the professional relationship had ended.

Uriri referred to Zimbabwe’s legal-professional rules and international standards governing lawyers’ independence.

He said accepting such a large benefit could create the appearance of an ongoing obligation and potentially affect public confidence in his independence.

He therefore declined both the vehicle and the cash offered to him and his wife.

Zimbabwean publication ZimEye also reported on the rejection and quoted Uriri’s explanation of his decision.

The Earlier Vehicle

The latest controversy has also revived attention around an earlier vehicle reportedly connected to Chivayo and Uriri.

According to ZimLive’s report on the earlier episode, older videos appeared to show Uriri receiving a Land Rover Discovery purchased by Chivayo in 2024.

READ ALSO  VIDEO: KCSE 2025 Exams End on November 21, Marking Crucial Milestone for Students

The report said the vehicle was valued at approximately US$110,000.

That earlier episode is separate from the September 2026 offer, and the circumstances surrounding the previous vehicle should not automatically be treated as evidence of wrongdoing.

Why Chivayo Is Known in Kenya

Chivayo has attracted considerable attention in Kenya because of his publicly documented interactions with President William Ruto.

In September 2026, Chivayo met Ruto at State House in Nairobi. According to Capital FM’s report, the businessman said their discussions included investment, infrastructure and economic development.

Chivayo has also announced plans to invest US$200 million in Kenya, describing the proposed investment as part of a broader infrastructure programme.

The reported investment pledge, however, is a claim by Chivayo; the reporting does not establish that the entire US$200 million programme has already been implemented.

His public association with Ruto has also attracted political attention in Kenya. Kenyan media have reported on Chivayo’s meetings with the president and his public statements about supporting Ruto.

That documented access does not, by itself, establish that Chivayo holds an official government position or has formal authority within Kenya’s political system.

A Question of Professional Independence

The dispute over the proposed Range Rover ultimately concerns more than the value of the vehicle or cash.

Chivayo presented the offer as recognition for legal work Uriri had performed in the past. Uriri viewed the same gesture through the lens of professional independence and public confidence in the legal profession.

His decision was therefore straightforward: he thanked Chivayo but declined the vehicle and both cash gifts.

READ ALSO  Not all Green Card Applicants should go back to their country, DHS Clarifies

The episode has nevertheless brought renewed attention to Uriri’s legal career, his involvement in politically significant Zimbabwean cases and Chivayo’s increasingly public business and political connections in the region.

Continue Reading

Diaspora

What Kenyan YouTube Creators 5% Deduction Means as Google Moves to Enforce Tax Law

Published

on

Spread the love

Is Kenya introducing a new 5 per cent tax on YouTube creators?

Not exactly.

The 5 per cent rate itself is not necessarily new. Kenya’s tax framework has for some time provided for withholding tax on income earned through digital content monetisation.

What has changed — and what is now causing anxiety among Kenyan YouTubers — is that Google is moving to collect the tax directly from their YouTube earnings.

Google has notified creators with AdSense for YouTube accounts based in Kenya that it will begin withholding 5 per cent Kenyan tax from their finalized YouTube earnings, starting with income earned in September 2026 and paid out in October.

The company has also told creators to provide and verify their Kenya Revenue Authority (KRA) Personal Identification Numbers (PINs) through AdSense by October 1, 2026.

For creators who have grown accustomed to seeing their full YouTube payout arrive in their accounts, the change could be noticeable from the next payment cycle.

And it has already triggered a broader debate about whether Kenya is taxing an industry that many young people built largely on their own.

So, what exactly is changing?

The simplest way to understand the announcement is this: the tax is moving closer to the point where the money is paid.

Previously, a Kenyan creator could receive their YouTube earnings through Google’s AdSense system and deal with their tax obligations separately.

Under the new arrangement, Google will deduct the applicable Kenyan withholding tax before the money reaches the creator.

Google says it is required to do so under Kenya’s Income Tax Act.

“Under the Kenya Income Tax Act, Google is required to withhold taxes on YouTube earnings paid to AdSense for YouTube accounts based in Kenya,” the company says in its tax guidance.

Google says the deduction will be made monthly from finalized YouTube earnings.

That means a creator with Ksh100,000 in finalized earnings would have Ksh5,000 withheld, leaving Ksh95,000 before any other applicable deductions.

For someone earning Ksh500,000, the Kenyan withholding would amount to Ksh25,000.

At Ksh1 million, it would be Ksh50,000.

The figures are simple, but for full-time creators who depend on YouTube for their livelihood, the impact could be significant.

READ ALSO  Kenya Airways Is Using AI to Rethink One of Aviation’s Most Sensitive Systems: Ticket Pricing

Why Google is asking for KRA PINs

The KRA PIN requirement is central to the new arrangement.

Google has instructed affected creators to enter their Kenyan tax identification information into AdSense for YouTube.

This allows the platform to identify the taxpayer associated with the account and apply the required Kenyan withholding.

Creators who do not provide the requested information could face payment problems.

Google’s notification gives October 1, 2026, as the deadline for providing the Kenyan PIN.

The first affected income will be September earnings, which are generally paid in the following month.

In practical terms, that means October could be the first month when many creators notice that their YouTube payout is lower than expected.

But is every YouTuber losing 5 per cent?

Not necessarily in the way some social media discussions have suggested.

The 5 per cent Kenyan withholding is separate from possible U.S. tax withholding.

YouTube already requires creators outside the United States to submit U.S. tax information, and depending on the creator’s circumstances, U.S. taxes can apply to revenue generated from viewers in the United States.

Google makes clear that the Kenyan withholding will be applied alongside any applicable U.S. taxes.

That distinction is important.

It does not mean every Kenyan creator will automatically lose a fixed percentage to both countries.

The U.S. withholding depends on factors including the creator’s tax status and the portion of their earnings attributable to U.S. viewers.

Nevertheless, creators who already see U.S. tax withheld from their payments are understandably watching the new Kenyan deduction closely.

For them, another deduction from the same YouTube payout means less money available at the end of the month.

Why creators are pushing back

The strongest reaction has not necessarily been against taxation itself.

It is about what creators believe they are getting in return.

Kenya’s creator economy has expanded rapidly over the past decade.

YouTube channels now cover almost everything — news, comedy, music, politics, travel, education, religion, technology, food, sports and personal stories.

Some creators have turned their channels into small businesses, employing cameramen, editors, writers, researchers, social-media managers and other workers.

For many young Kenyans, digital content has also provided an alternative to an increasingly difficult formal job market.

READ ALSO  African Fintechs Are Making the Gulf Their Next Big Move

That is why some creators believe the government should be doing more to support the sector before increasing the mechanisms used to collect revenue from it.

One creator quoted in reaction to the announcement argued that the government had offered little support to digital creators while they faced expensive equipment, data and production costs.

The argument is straightforward: if content creation is now recognised as a taxable industry, should it also be treated as an industry worthy of structured support?

That question is likely to become more prominent as the new withholding system takes effect.

Why KRA wants the money collected at source

From the government’s perspective, the move makes sense.

Digital income can be difficult for tax authorities to monitor when payments move between creators and international technology companies.

A Kenyan creator may have no physical office, no employees and no conventional payroll system.

Their business could consist of a YouTube channel, a smartphone, a camera, an internet connection and an AdSense account.

But the income can still be substantial.

By having Google withhold the tax, KRA does not have to rely entirely on individual creators to declare their YouTube income after receiving it.

The platform effectively becomes part of the collection system.

That also creates a clearer link between the money being paid, the person receiving it and the taxpayer’s KRA PIN.

For the government, that means greater visibility into a sector that was once relatively difficult to track.

A growing digital media market

The timing is significant because Kenya’s digital audience has expanded dramatically.

The Reuters Institute’s Digital News Report 2026 highlights the growing importance of social platforms in the country’s media environment, with YouTube increasingly becoming an important source of news and information.

That growth has created an ecosystem in which individual creators can sometimes reach audiences larger than those of traditional media outlets.

A successful YouTuber can attract millions of views without owning a television station, printing a newspaper or operating a radio frequency.

That is precisely what makes the sector attractive — and increasingly important to tax authorities.

What creators should do

For creators who have received Google’s notification, the immediate issue is compliance.

READ ALSO  Airtime Lending Returns in Nigeria After Court Halts FCCPC Enforcement

They should log into their AdSense for YouTube account and check their tax information.

The KRA PIN submitted should be accurate and correspond with the taxpayer details associated with the account.

Creators should also understand that the revenue displayed in YouTube Analytics is not necessarily the final amount on which the deduction will be calculated.

Google says the withholding applies to finalized YouTube earnings.

Creators who operate businesses around their channels may also want to review their tax position with a qualified professional, particularly if they have employees, business expenses, foreign income or U.S. tax withholding.

The bigger issue goes beyond YouTube

The most important part of Google’s announcement may ultimately have little to do with YouTube itself.

It signals how Kenya is adapting its tax system to an economy in which people increasingly earn money through global digital platforms.

YouTube is only one part of that economy.

Kenyan creators also make money through TikTok, Facebook, Instagram, podcasts, newsletters, sponsorships, affiliate marketing and other online businesses.

As these income streams become more valuable, governments around the world are looking for ways to bring them into the tax system.

For creators, that creates an uncomfortable reality.

The same internet that allowed them to build businesses without waiting for traditional institutions to give them a job is now making their income easier for governments and platforms to identify.

The debate, therefore, is unlikely to end with the first Ksh5,000 deduction.

It is likely to become a much larger conversation about taxation, regulation and government support for Kenya’s creator economy.

For now, however, the immediate deadline is clear.

Google wants Kenyan creators using AdSense for YouTube to provide their KRA PINs by October 1, 2026, while the first 5 per cent Kenyan withholding is expected to apply to September earnings paid out in October.

For a creator earning Ksh100,000, that means Ksh5,000.

For someone earning Ksh1 million, it means Ksh50,000.

And for an industry that has spent years building itself largely outside the traditional media establishment, that first deduction could mark the beginning of a very different relationship between Kenya’s creators, Google and the taxman.

Continue Reading

Trending