This archive report was first published on 17 July 2019.
On July 17, 2019, the Central Bank of Kenya (CBK) Governor Patrick Njoroge addressed the press at his office, PHOTO: Beverlyne Musili, Standard.
The Central Bank of Kenya has intervened in the ongoing dispute between the government and betting companies over tax compliance issues. The CBK has instructed banks to suspend services to betting firms that have failed to meet regulatory requirements.
According to a statement from the CBK, the Betting Control and Licensing Board (BCLB) has not renewed the operating licenses of certain bookmakers and lottery operators for the period July 1, 2019, to July 1, 2020. The statement read, 'Please find attached the list of entities whose licenses have not been renewed for your information.'
The move comes after the government ordered telecom companies to stop processing payments for betting companies that have not met regulatory requirements. Betting operators have denied any wrongdoing, with Sportpesa refuting the government's claims that it has not fully complied with all legal and tax obligations.
Sportpesa has published a full-page newspaper advert explaining its finances and tax records to the public. The company has also published a demographic statement dismissing claims of underage gamblers on its sites.
Another betting firm, Nanovas International (betPawa), has moved to court to challenge the Betting Control and Licensing Board's refusal to renew its bookmaker and public gaming licenses for the year 2019/2020.
Interior Secretary Fred Matiang'i has signed immediate deportation orders for 17 gambling sector executives, most of whom are from Russia and Bulgaria, for violating the terms of their local work permits.
According to figures provided by Safaricom and betting companies, there are about 12 million active betting accounts. The majority of these accounts are now suspended, leaving their users in limbo.
The Finance Act imposes a 35 per cent tax on betting, where 20 per cent is levied on winnings and betting firms remit 15 per cent.
