After rejecting a 50 percent increase in gambling taxes, MPs in Kenya approved a 35 percent rise on gambling companies.
Kenya.- Kenyan gambling companies will be forced to pay more taxes, as MPs have approved a new 35 percent increase. The local president Uhuru Kenyatta had suggested last week to lower the initial proposal of 39.5 percent to 35 percent.
Kenyatta rejected the gaming bill mainly because it didn’t include enough requirements to dismiss the participation of minors in gaming operations. The original draft contained further conditions on youth participation but they were deleted by the House of Representatives.
However, on Thursday MPs voted during the last day of the legislative sessions to approve the president’s recommendations. The new tax will be applied to gaming, lottery, sports betting and competition operators in the country.
Earlier this month, the Association of Gaming Operators expressed its concerns regarding a new hike in gambling taxes, as they thought that the proposals were excessive. Ronald Karauri, chairman of the association and CEO of SportPesa, said that if a 50 percent increase was going to be imposed in the country, the company would have no choice but to pull out all the sponsorships because as a business their revenues would go down. It is still uncertain if the association will accept the new increase.