In a ruling delivered by Justice Stephen Mbungi<\/strong>, the court upheld the 12.5 per cent excise duty introduced under the Finance Act, 2023<\/strong>. The judge found the tax constitutional and distinct from other levies, rejecting claims of double taxation.<\/p>\n\n\n\n The petition, filed on August 21, 2023<\/strong>, by Edward Okwama<\/strong>, had named the National Assembly,<\/strong> Kenya Revenue Authority (KRA)<\/strong>, Milestone Gaming Limited<\/strong>, Standard Global East Africa<\/strong> and the Attorney General as respondents. Okwama argued that combining the excise duty with the 20 per cent withholding tax on winnings<\/strong> violated the Constitution\u2019s Article 27<\/strong> on equality and amounted to an unlawful duplication of taxes under Article 2(4)<\/strong>.<\/p>\n\n\n\n However, Justice Mbungi disagreed, noting that excise duty applies to punters at the point of placing bets, while withholding tax targets winnings, making them separate obligations. He further clarified that gross gaming revenue is a separate tax levied on betting companies, not players.\u00a0<\/p>\n\n\n\n The National Assembly defended the legislative process, maintaining that the taxes were introduced in compliance with Article 95<\/strong> of the constitution.<\/p>\n\n\n\n The decision is viewed as a significant boost to Kenya\u2019s gambling regulation framework, aimed at tackling betting-related financial hardship and social harm. It also secures continued revenue streams for the KRA, while keeping betting companies under strict oversight.<\/p>\n\n\n\n Okwama has not announced whether he will appeal, but the judgment is expected to influence future legal challenges and strengthen the state\u2019s approach to managing the country\u2019s fast-growing gambling sector.<\/p>\n\n\n![\"\"](\"https:\/\/focusgn.com\/africa\/wp-content\/uploads\/sites\/7\/2025\/06\/MIT-mSurvey-1_0-300x200.jpg\")
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