Kenya authorises higher taxes for betting firms

Gambling companies will have to hand in 7.5 percent of revenue after paying out winnings.

Kenya.- Kenyan gambling companies will have to start paying higher taxes after MPs approved the increases and changed the law on betting, gaming and lotteries. They will pay 7.5 percent of their revenue to the state by the 20th of every month after paying out winnings, whilst gaming companies will hand 12 percent of their revenue. Lotteries will pay 5 percent of their turnover by the same deadline.

For competitions where one has to pay to take part , the prize competition tax has been set at 15 percent of the total gross turnover. The Finance Bill, which was proposed by the Finance Committee on behalf of the Treasury, was passed by a handful of MPs on Tuesday. Benjamin Lang’at, Finance Committee Chairman, said: “I expected the Finance Bill to be enacted, paving the way for a new tax regime for the companies from next week.”

Majority Leader Aden Duale, who previously sponsored the bill, said: “This Bill is meant to discourage gambling. We introduced a law in this House to prevent gambling from becoming a channel for money laundering and tax evasion.”

Legislators in Kenya first introduced the Betting, Lotteries and Gaming Bill into the National Assembly in June 2015 and it received a second push last week when MPs approved its Second Reading.