This archive report was first published on 2 July 2020.
NAIROBI, KENYA - July 2, 2020
President Uhuru Kenyatta's signature on the Finance Act 2020 has removed a 20% excise tax on betting, but the Treasury has already announced plans to reintroduce the tax within six months.
According to Ukur Yatani, Cabinet Secretary for National Treasury and Planning, the removal of the tax was a result of the Committee Stage of the Bill. However, he noted that the government remains committed to mitigating the social vices associated with betting activities.
“Following various consultations and in line with the government’s commitment to mitigating against the social vices associated with betting activities, we will be proposing to the National Assembly, the reintroduction of the excise duty on betting within the next six months,” Yatani said.
The government introduced a 15% betting tax and 20% withholding tax on winnings in 2018, and a 20% excise duty on betting in 2019. The measures led to several betting companies closing shop due to a longstanding row with the Kenya Revenue Authority (KRA) over taxation.
Experts had criticized the tax, saying it created a possible loophole for unregulated online betting. Analysts from KPMG also warned that the new tax could be the final straw for the industry, which is already burdened with a 15% betting tax, 30% corporation tax, and 20% withholding tax on winnings.
