This archive report was first published on 10 August 2019.
On August 10, 2019, the Nanyuki High Court delivered a ruling that favored the Kenya Revenue Authority's (KRA) interpretation of the term 'winnings.'
The court defined 'winnings' as 'gross gaming revenues,' which are subject to a 20% withholding tax, as per the Finance Act of 2018.
The ruling came after two petitions filed by betting firms in October 2018 challenged the constitutionality of taxing winnings from lotteries, betting, or gaming activities.
The petitioners, including Sportpesa, Betway, and Cheza, argued that winnings from betting should not be considered income and therefore should not be subject to tax under the Income Tax Act.
They also sought a refund for taxes levied on winnings, which they claimed were unconstitutional.
However, the Nanyuki High Court upheld the KRA's collection method, stating that the duty of determining how taxes are imposed and enforced lies within the National Assembly.
