This archive report was first published on 7 August 2019.
Kenya Revenue Authority (KRA) has notified gamblers that it expects betting firms to deduct and remit 20% tax on winnings, as per the Finance Act 2018.
Despite an April court order that bars the deduction until a case challenging the taxation is heard, betting firms have begun complying with the directive.
BetLion, one of the firms, has notified customers that it would be deducting 20% from their winnings and remitting it to the taxman.
“This means that customers will now get 80% of the potential winnings going forward. As a business, we hope that customers continue to engage in responsible gaming,” said BetLion.
Some sector players argue the move will wipe out their winnings, while others see it as a pragmatic response to a growing industry.
