This archive report was first published on 21 August 2019.
On August 20, 2019, a group of 12 Kenyan MPs held a press conference at the Serena Hotel in Nairobi to express their opposition to the government's decision to revoke the operating licenses of betting firms such as Sportpesa and Betin.
According to the MPs, the government's decision was based on unfounded allegations that the betting companies had not been remitting taxes. Kakamega Senator Cleophas Malala, who led the group, stated that the government's directive had rendered some Kenyans jobless and that taxes from the two giant industry players form a big percentage of the revenue collected.
Malala also argued that the taxation of customer's stakes is taxation of capital and represents a violation of the existing law, which only taxes the income tax. He added that the deportation of some gaming operators was a blatant violation of basic human rights since they were duly registered.
Nominated Senator Isaac Mwaura defended Sportpesa, stating that it does not only sponsor sports but has also been supplying people with disability with sun-cream lotion and braille materials for the blind. He accused some individuals who are among gaming competitors of misadvising President Uhuru Kenyatta.
"This notion is coming from certain individuals who also happen to be competitors in the same business," Mwaura said.
Nominated MP Godfrey Osotsi added: "We will not allow AFC and Gor Mahia to die because of someone who is mismanaging the sector."
Alego Usonga MP Samuel Atandi stated that most gaming companies have fully complied to corporate and income taxes. He suggested that the Kenya Revenue Authority (KRA) should open negotiations with the companies to find an amicable solution to the matter.
"Most of these betting companies have complied with both corporate and gaming tax. The problem is with the taxation on winnings," Atandi said.
"KRA has to open negotiation with these companies so that they can agree on an amicable solution to solve this matter," he added.
