After a 20 percent sports betting tax was quietly removed in suspicious last-minute changes to a finance bill signed into law in Kenya, the government reintroduced the controversial tax. The levy was cited as part of the reason the two biggest players—SportPesa and Betin—closed down.
Treasury Cabinet Secretary Ukur Yatani said while the Finance Act 2020 removed the tax, the government had not reneged on its commitment to tax the betting industry.
“The removal of this tax happened during the committee stage of the bill. Following various consultations in line with the government’s commitment to mitigating against the social vices associated with betting activities, the National Treasury and Planning will be proposing to the National Assembly the reintroduction of excise duty,” Yatani said.
However, the law does not allow the reintroduction during the first six months after passage of the bill, according to Yogonet.
“The removal of the 20 percent tax is a cause of concern and not celebration. This will open the floodgates for more betting companies and subsequently, more gambling addiction especially if public health measures to protect the youth from gambling harm are not in place,” said Gaming Awareness Society of Kenya co-founder Nelson Bwire.
Committee meeting minutes show that an obscure stakeholder group wrote a proposal on May 15 to scrap the tax. “It has made many betting firms cash-strapped, hence cutting down on their sponsorships to local sports clubs,” the group said.
The committee agreed with the logic.
