This archive report was first published on 28 July 2019.
Published on July 28, 2019, former chairman of the Betting Control and Licensing Board (BCLB) Kimani Kung'u has disputed the government's claim that betting firms made Sh200 billion in revenue last year.
Speaking in an interview, Kung'u faulted the revenue and tax compliance status of betting firms as recently cited by Interior Cabinet Secretary Fred Matiang'i as reasons behind the cancellation of licences.
According to Kung'u, the revenue of betting companies at the end of 2018 was between Sh20 billion and Sh25 billion, and there is no way that figure could have risen to Sh200 billion just six months down the line.
“People have bundled around some figures of Sh200 billion. You have to differentiate between revenue and input...,” said Kung’u.
He added, “We did our due diligence on all of them (betting firms) and I don’t think we would have given any licences to people (firms) who are not fit.”
The figure is a tenth of Sh200 billion that Matiang’i said betting firms make without giving any reference or proof.
The huge disparity between the revenue figures and tax submitted to Kenya Revenue Authority (KRA) saw Matiang’i order for the shutting down and cancellation of licences of 27 betting firms on grounds of tax avoidance.
Senator Cleophas Malala also weighed in on the issue, challenging Matiang’i to name directors of some of the companies that were licensed recently.
Human rights activist Brian Weke claimed top officials in government were killing some betting firms to create room for theirs.
