This archive report was first published on 3 September 2019.
On September 3, 2019, the Nation reported on a brewing controversy between the Kenya Revenue Authority (KRA) and the gaming industry.
The High Court issued an order barring the regulator, the Betting Control and Licensing Board (BCLB), and other agents from stopping the operations of gaming firms on June 30.
However, KRA ignored the order and issued damaging directives to hinder business, including suspending Paybill numbers of some firms, effectively shutting them down.
Online gaming relies heavily on mobile money payments, and without these, the sector would be paralyzed.
But was this measure legal? The pointers suggest otherwise.
The issue is not about morality, but rather about the legality of KRA's actions.
Businesses should be encouraged and boosted, not hindered by regulatory actions.
Disregard of court orders and delaying licenses exasperates businesses and erodes the faith of investors in the government.
Withholding a license is not a recognized measure of resolving tax disputes, and it's not part of the Tax Procedure Act.
For context, the courts ruled in favor of Coca-Cola after KRA claimed the beverage manufacturer had not paid excise duty between 2006 and 2008.
The outcome of the case is not the issue; it's the procedure that's at question.
During the decade-long dispute, Coca-Cola's licenses were not withdrawn, and the company continued to operate.
Kenya's tax disputes are many, but shutting down businesses or withdrawing licenses is not the first action taken.
The Judiciary is critical in the administration of law, dispute resolution, and order.
It's inexplicable that KRA's orders are not being obeyed by certain regulators.
The gaming industry feels vulnerable, and this has been expressed on several occasions.
