According to an SBCNews report published on Tuesday, betting shops in the African country were left stunned in 2018 after federal lawmakers passed a measure that imposed a across-the-board 20% turnover tax. The source clarified that the humiliating duty was soon challenged in court, resulting in the Kenya Revenue Authority being asked to formally justify why it insisted on doubling the rate, which was previously a more modest 10%.
Authorised Board
He reportedly faced concerted pressure to sign off on his country's proposed budget for the coming financial year, and Kenyatta subsequently ordered Finance Minister Ukuru Yatani Kanacho to conduct a strategic review of the controversial tax rate for bookmakers and other mobile betting sites. This review by the former ambassador allegedly later recommended that the government amend its Finance Act 2021 to require all gambling operators, including those involved in sports betting and lotteries, to pay a general 7.5% duty on turnover .
Confirmed critic
Despite this advice and its subsequent endorsement by the powerful Finance and Planning Committee of the National Assembly, uncertainty about whether Kenyatta would actually agree to such a cut reportedly arose because of his known long-standing opposition to gambling . The ambiguity allegedly continued an unattractive trend when several prominent sports betting operators, including British firm SportPesa, left the Kenyan market in protest at the 20% tax rate.
Industry powerhouse
However, Kenyatta, 59, reportedly signed an amendment to reduce the gambling tax rate and was a pleasant tonic for companies such as SportPesa, which re-entered the Kenyan sports betting market last year under new owner Milestone Games. Limited prior to the immediate suspension of its licence by the Betting Control and Licensing Board due to an unpaid tax bill. What's more, the move is allegedly bound to get the approval of Sweden's Betsson AB following the recent launch of the Betsafe Kenya brand in partnership with licensed Bet High Kenya .
Avoiding arrears
Nikhil Hira is a director of South African law firm Bowmans and reportedly told Business Daily Africa that the revised tax rate of 7.5% will now apply to all turnovers received from the first day of July . He further allegedly said Kenyatta's decision should further help the country of about 55 million people avoid similar past deadlocks that led to the loss of significant tax revenue.
Hira reportedly said: "There were big delays in 2018 and 2019 and the president refused to sign the documents before October. The only goal was to have all the tax measures in the bill in place by July 1."