This archive report was first published on 5 August 2019.
On August 5, 2019, the Kenya Revenue Authority (KRA) found itself at the center of controversy after freezing bank accounts belonging to major betting firms, despite a court order allowing them to continue operating.
The High Court had issued an order on an unspecified date barring the Betting Control and Licensing Board (BCLB) and other agents from stopping the betting firms from operating after June 30.
However, the KRA went against the court order and the law by pushing for the withdrawal of the betting firms' licences and a freeze of their bank accounts.
Major betting firms, including SportPesa and Betin, told Parliament that the KRA's actions were unlawful and that they were in talks with the tax authority to resolve the dispute.
“Despite a High Court order against the KRA, various agency notices have been issued by the KRA against the company freezing their bank accounts,” Betin Kenya told the Senate Committee on Justice, Legal and Human Rights.
“The KRA has proceeded to notify the BCLB that the company is non-compliant and should not have its licences renewed.”
The dispute between the KRA and the betting firms centers on the amount and responsibility of the gambling firms in collecting 20 per cent of winnings on behalf of the taxman.
Senators censured the State for defying court orders, with the chair of the committee, Samson Cheragei, saying, “We want them to tell us why they have decided to treat court orders as tissue paper.”
