This archive report was first published on 8 July 2020.
Kenya's sports betting industry is on the brink of collapse, with the re-introduction of a 20% excise duty on sports betting expected to take effect in the next six months. This move, which has left many punters worried, is part of the reason why major players like SportPesa and Betin have closed shop.
The tax, which was introduced in the 2019/20 financial year, was removed in a last-minute change to the Finance Bill that was signed into law by President Uhuru Kenyatta on July 1, 2020. However, the government has now announced plans to re-introduce the tax, which is expected to have a significant impact on the industry.
According to the Kenya Revenue Authority (KRA), many betting companies owe the government a significant amount of unpaid taxes. The KRA has stated that it will not tolerate any further non-compliance, and has ordered payment providers like M-Pesa to close down pay-bill numbers and short codes used by betting companies.
Twenty-seven betting operators who refused to pay the levy due to pending court action were forced to shut down, leaving 12 million customers without access to their funds. The High Court of Kenya threw out an application by SportPesa and Betin to block the order, stating that there was no basis for the companies to operate on expired licenses.
Despite the challenges facing the industry, some betting companies have agreed to comply with the laws and regulations, including the re-introduced tax. Additionally, international sportsbooks continue to service Kenyan customers, but punters must be aware of the requirements for verifying their accounts and making deposits.
As the industry navigates this new landscape, players must be prepared to adapt and consider new betting sites or international betting sites. The future of online betting in Kenya remains uncertain, but one thing is clear: the industry will never be the same again.
