Kegow Updates Transaction Fees, Adds 7.5% VAT on Charges

In Short

• Kegow has changed how much users pay per transaction on its platform.
• The new fees are tiered by transaction amount and run from ₦10 to ₦30.
• A 7.5% VAT, which is Nigeria’s value-added tax, is applied to the fee itself.

What Happened: Kegow Transaction Fee Bands For Transfers

Kegow published an update to its transaction fee structure. The company says the change applies across common use cases like sending money, paying bills, and making transfers.

Under the new pricing, transactions between ₦1 and ₦249,999 attract a ₦10 fee. Transactions from ₦250,000 to ₦499,999 attract a ₦25 fee. Transactions from ₦500,000 to ₦1,000,000 attract a ₦30 fee.

On top of these charges, a 7.5% VAT is applied to the fee amount. That means VAT is not calculated on the full transaction value, it is calculated on the service fee. For example, a ₦10 fee attracts ₦0.75 VAT, and a ₦30 fee attracts ₦2.25 VAT.

Why It Matters: Transfer Pricing Transparency In Nigerian Fintech

Fee changes matter because they affect the real cost of digital payments, especially for frequent transfers and bill payments. Tiered pricing is also a way to keep smaller transactions cheaper while charging more for larger-value transfers.

Adding VAT to the fee can confuse users if it is not clearly shown at checkout. Many customers only notice changes when the final debit amount differs from what they expected.

For operators and developers building on top of payment products, published fee bands help with clearer pricing in apps, receipts, and customer support scripts. It also helps businesses estimate payment costs when they reconcile transactions at the end of the day.