This archive report was first published on 1 August 2019.
On July 31, 2019, SportPesa CEO Ronald Karauri appeared before the Senate Justice and Legal Affairs Committee over the halting of Licences and permits of betting and Gaming at County Hall, Nairobi.
The Kenya Revenue Authority (KRA) is demanding Sh61 billion from at least 27 betting firms in taxes, citing non-compliance with withholding tax regulations.
KRA Commissioner Elizabeth Meyo stated that out of 72 registered betting firms, 27 had not complied with the regulations, while seven others had agreed to payment plans.
The regulator, along with the Betting, Control and Licensing Board (BCLB) and Interior Cabinet Secretary Fred Matiang'i, faced criticism from the Senate Committee on Justice, Legal and Human Rights for acting against a court order.
The committee, chaired by Nandi Senator Samson Cheragei, ordered Dr. Matiang'i and the regulator to appear before it on the same day, citing impunity for disregarding a court ruling.
Senator Susan Kihika accused the Interior ministry of disregarding the rule of law, citing the deportation of directors from Gamcode Ltd (trading as Betin) despite holding valid work permits.
Meru Senator Mithika Linturi expressed 'public anger' over the matter, stating that the actions of the authorities were unacceptable.
KRA defended its position, stating that the law requires betting companies to act as Withholding Agents for KRA to withhold and remit taxes to the Government.
Commissioner Meyo stated that the agency was in talks with the industry to come up with a lasting solution and that the majority of firms had made acceptable payment arrangements.
SportPesa CEO Ronald Karauri told the committee that KRA acted in bad faith by asking the regulator to withhold its licence over the tax dispute.
