Kenya's Betting Industry Under Scrutiny: 27 Companies Face License Revocation

Newsroom Jul 11 2 min read

This archive report was first published on 11 July 2019.

Kenya's Betting Industry Under Scrutiny ¶

As of 2019, Kenya's betting industry was valued at Ksh.204 billion, with a projected turnover of Ksh.500 billion by 2020, making it the third-largest betting market in Africa.

However, the government has expressed concerns over the industry's tax compliance, with only Ksh.4 billion in taxes remitted last year. Furthermore, many companies failed to submit the 20% withholding tax on payouts.

The Betting Control and Licensing Board (BCLB) has been tasked with vetting the industry, with a focus on ensuring compliance with regulations. The board has already suspended the licenses of 19 companies, including Sportpesa, Betin, and Betway, while deferring the permits of eight others.

The government's concerns over the industry extend beyond tax compliance, with many companies owned by foreigners and lacking Kenyan representation. This has raised concerns over the siphoning of revenue to offshore accounts.

Additionally, the government has expressed concerns over the impact of betting on youth, with over 500,000 young people ending up on the Credit Reference Bureaus (CRB) list due to gambling-related debt.

As the industry continues to face scrutiny, it remains to be seen how the government's regulations will impact the sector.