This archive report was first published on 3 July 2020.
On June 26, 2020, President Uhuru Kenyatta signed the Finance Act 2020 into law, scrapping the 20 per cent excise duty introduced last year. The move sparked public outcry, with Kenyans accusing the State of backtracking on the levy introduced six months ago.
According to Ukur Yatani, the National Treasury Cabinet Secretary, the State remains committed to taxing the sector. He blamed members of the National Assembly for the policy reversal, stating that the removal of the tax happened during the committee stage of the Bill.
Yatani announced that the National Treasury and Planning will propose the re-introduction of the excise duty on betting within the next six months. This move comes after the sector has been lucrative for telecommunication service providers, with Safaricom losing Sh1.9 billion in revenues last year due to the State ban on betting.
Interior CS Fred Matiang'i had previously threatened to deport any foreigners engaged in the business under falsified work permits, citing that betting firms owe the exchequer more than Sh26 billion in backdated taxes.
