This archive report was first published on 2 July 2020.
On July 2, 2020, President Uhuru Kenyatta signed the Financial Bill 2020, which included a proposal to drop the 20% exercise duty on bets staked. However, this move may be short-lived.
The Treasury cabinet secretary, Ukur Yatani, has clarified that the removal of the tax occurred at the committee stage of the bill. In a statement, Yatani announced that the National Treasury and Planning will propose the reintroduction of the exercise duty on betting within the next six months.
Yatani cited the adverse effects of betting on the social fabric of society, particularly among the youth, as the reason for the proposed reintroduction of the tax. He emphasized the government's commitment to containing vices associated with the betting industry.
The government has taken a series of measures to regulate the betting industry in recent years. In 2018, a 15% tax was introduced on betting companies, and a 20% withholding tax was imposed on winnings. In 2019, a 20% exercise duty was introduced on the amount staked, which led to several betting giants, including SportPesa, Betin, and Elitebet, leaving the Kenyan market.
