Kenyan tax hike to be ditched

Kenya-facing operators have been given a reprieve after the country’s National Assembly voted to retain its levels of gaming tax, seemingly ending fears it could have been raised to 50% of revenues.

The National Treasury Cabinet minister Henry Rotich had last month included the lofty tax in the country’s Finance Bill, however, this move was later rejected by the House Finance Committee with its recommendation to keep current levels of taxation yesterday approved by MPs.

At present, operators are being charged 7.5% GGR on betting and 12% GGR on gaming, with many having feared a hike to 50% would have destroyed the industry.

The Finance Bill, minus the 50% tax proposal, now awaits presidential assent.

The news will come as a relief to the likes of local firm SportPesa, which had filed a legal challenge against the proposed tax, describing it as an “unconstitutional measure”.

Meanwhile, foreign operators such as Betway and Dafabet will also welcome the rejection of the tax increase, with the firms having moved into the country over the past 12 months.

Rotich had said the motivation behind the hike was to protect the young and vulnerable from gambling with the additional revenues raised to be channelled towards youth sports and culture projects.