This archive report was first published on 12 November 2019.
On November 12, 2019, the Kenya Revenue Authority (KRA) announced that it would challenge a ruling by the Tax Appeals Tribunal in favor of SportPesa and Betin Kenya.
The taxman is disputing the tribunal's decision that the 20 percent tax should be charged on the positive difference between the payout made and stakes placed in a given month.
According to KRA, the tax should be charged on the gross amount paid to the punters, including the staked amount.
The Treasury reintroduced the 20 percent tax on winnings last year, and amended the definition of winnings to include the stakes, sparking the dispute with the betting firms.
As a result, SportPesa and Betin Kenya have ceased their operations, citing the heavy taxation as the main reason.
KRA has been demanding billions of shillings from betting firms based on the gross amount paid to the punters, including the staked amount.
