This archive report was first published on 5 November 2019.
On November 5, 2019, the Kenya Revenue Authority (KRA) issued a Sh1.75 billion tax demand to Betika, a Kenyan bookmaker, sparking a dispute between the two parties.
Betika, owned by Shop and Deliver, claims that enforcing the tax demand would cripple its financial operations and potentially lead to job losses.
The taxman had written to KCB and Guaranty Trust Bank demanding Sh832.45 million from Betika's accounts for four months to December 2018 and a further Sh587.63 million for the period between January and February 2019.
KRA is also demanding an additional Sh328.1 million in accrued penalties and interest after Betika failed to comply with the taxman's demands.
The dispute stems from KRA's directive to impose a 20% excise tax on all betting stakes, which has had irreversible effects on the industry, with about 2,500 youths losing their jobs after Sportpesa and Betin closed shop.
