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KRA Targets Non-Compliant Betting Firms in Fresh Tax Row

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 15 January 2020.

January 15, 2020, marked the beginning of a fresh tax row between the Kenya Revenue Authority (KRA) and betting firms in Kenya.

As of Tuesday, the taxman has issued a public notice warning non-compliant bookmakers that their pay bill numbers and online operations will be suspended.

The move is a repeat of last year's showdown that saw Sportpesa and Betin Kenya leave the Kenyan market.

The Finance Act 2019 introduced excise tax on stakes placed on gambling sites, requiring gaming companies to display the same deductions on betting slips.

Additionally, KRA imposed a 20 pc withholding tax on all winnings on compliant betting firms from last July.

Four gambling enthusiasts had moved to court seeking a declaration that some sections of the Finance Act, 2019 on taxation are unconstitutional.

Justice Weldon Korir declined to suspend the law but directed all parties to file their responses and submissions ahead of the hearing on March 20th.

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