Price spiked on last day of the session
Kenyan MPs have approved a significant increase in the gaming tax rate, from a maximum 7.5 percent rate to a uniform rate of 35 percent. The increase was a compromise proposed by President Uhuru Kenyatta. Earlier this month he refused to sign the country’s Finance Bill because legislators declined to levy a 50 percent gaming tax, reported CalvinAyre.com.
The rate was imposed on the last day of the parliamentary session, just ahead of national elections scheduled for August 8. That means higher taxes for sports betting, gaming, lottery and competition operators, reported CalvinAyre.com. The website added that the burdensome increase could jeopardize Kenya’s viability as a gaming market. Licensed gaming operators in the country also must pay a 30 percent corporation tax on net income.
Until now, Reuters reported, lotteries were taxed at 5 percent, bookmakers at 7.5 percent, casino gaming revenues at 12 percent and competitions like raffles at 15 percent. Most gaming in Kenya is conducted online, the news outlet added.
