Lack of regulation behind the move
The government of Kenya is considering a drastic increase in gaming taxes. At a reading of the 2017-18 budget before parliament at the end of March, Treasury Cabinet Secretary Henry Rotich said betting and gaming are widespread but not well-regulated as well as under-taxed.
“The expansion of the industry has had negative social effects on society, especially on the youth and vulnerable members,” Rotich said. He has proposed that gaming taxes be raised to 50 percent across the board. Presently, betting is taxed at 7.5 percent, lottery at 12 percent, and gaming at 15 percent, reported Kenyans.co. Meanwhile, Rotich said the additional revenues will be go to support sports, culture and arts in the country.
Calling the increase “punitive,” Business Daily Africa said the Kenya Revenue Authority previously moved to stop importation of gaming equipment unless it was first approved by the Betting Control and Licensing Board. And Kenyan sports betting giant SportPesa has called the plan counter-productive, saying any planned increases in tax should be done in consultation with stakeholders.
Meanwhile, Midiwo is also stumping for an amendment bill that provides a comprehensive legal framework for the regulation of gaming in Kenya.
“We have proposed in this law that no foreigner can own a gambling license in Kenya. Many of them, including Chinese and Bulgarians, are not licensed,” he said, calling it “disease” that could undermine the country’s economy.
