This archive report was first published on 3 July 2020.
On July 3, 2020, the Kenyan government announced plans to revive a 20% excise duty on betting companies, which was scrapped in the Finance Bill 2020.
The decision comes after a public outcry over the removal of the tax, which was introduced in 2018 as a 15% tax on betting companies and a 20% withholding tax on all winnings.
Treasury Cabinet Secretary Ukur Yatani blamed the Parliament for the removal of the tax, stating that the industry has been lobbying the government to reduce taxation.
"The players in the industry have been petitioning the government to reduce taxation in the industry," said Mr Yatani.
The government plans to reintroduce the excise duty on betting within the next six months, according to Yatani.
The move is seen as a response to the closure of several betting companies in Kenya, despite the industry's growth on the back of mobile payments and digital applications.
Leading sports betting firm SportPesa Global Holdings made a profit after tax of almost Sh1.6 billion in 2018, according to its financial statements.
