This archive report was first published on 3 July 2020.
Kenya's Treasury Cabinet Secretary Ukur Yatani has announced plans to reintroduce excise duty on betting within the next six months.
The move comes after President Kenyatta assented to the Finance Bill 2020 on June 30, which saw the scrapping of the 20 percent excise duty on betting wins.
According to Yatani, the removal of the excise tax during the committee stage of the bill goes against the government's commitment to mitigating the social vices associated with betting activities.
As of 2018, the government had introduced a 15 percent tax on betting companies and a 20 percent withholding tax on winnings. In 2019, an excise duty of 20 percent was introduced on betting at the rate of 20 percent of the amount stocked.
The new tax measures had a significant impact on the betting industry, with several local players closing shop. The players had been petitioning the government to review and reduce the taxation in the industry, but to little success.
However, the Finance Bill 2020 provided a glimmer of hope for the industry, as it allowed Kenyans to place bets with international gaming firms that were not subject to Kenya's taxation law.
Yatani's announcement has sparked hopes that the government will revisit its decision to scrap the excise duty on betting.
