Betway Kenya’s parent company hit by KSh 5 billion tax bomb as it seeks liquidation
Tribunal sides with Kenyan Revenue Authority in a major tax dispute, dealing a financial and reputational blow to Bluejay Limited amid ongoing liquidation efforts.
Kenya – The parent company of Betway Kenya, Bluejay Limited, is staring down the barrel of a KSh 5 billion ($37m) tax bill after the Tax Appeals Tribunal upheld several assessments by the Kenya Revenue Authority (KRA).
The blow comes just as the embattled betting giant files for liquidation in the Milimani Law Court’s Commercial and Tax Division, a development set to take centre stage in the High Court on May 5, 2025.
In a verdict, the Tribunal found Bluejay had failed to adequately explain the bulk of its disputed tax positions, particularly those tied to withholding tax on betting winnings and transactions with related companies.
Although the Tribunal tossed out claims from the 2016 financial year, citing the time-barred status, it stood firm on most of KRA’s claims, including Corporation Income Tax and Excise Tax, according to a report by the Kenyan Wall Street publication.
Miscalculations on winnings
Bluejay had sought to challenge the KRA’s approach, accusing the taxman of miscalculating withholding tax on winnings and ignoring standard business expenses. The company also contested the KSh 163 million ($1.2m) penalty, which the Tribunal ultimately struck down as “invalid”.
Still, the betting behemoth didn’t escape unscathed. It was taken to task over transfer pricing practices involving six offshore affiliates. The Tribunal criticised the KRA’s methodology in challenging these expenses, citing a flawed application of the OECD Transfer Pricing Guidelines, but stopped short of completely siding with Bluejay.
The looming liquidation adds a twist to the tax saga. With the company in financial freefall, the KRA may face an uphill battle recovering its dues.
