Kenya settles on 35% tax rate

Kenyan MPs approved a 35% tax on all online gambling verticals on the final day of the country’s legislative session yesterday.

The new tariff is part of the country’s finalised finance bill, with the gambling tax proving the most contentious part of the overall package thanks to a series of changes.

Kenyan National Treasury Cabinet minister Henry Rotich had originally called for a 50% tax rate to help protect minors from the country’s spiralling gambling participation rates, but MPs lowered that to the 7.5% when passing the bill.

However Kenyan president Uhuru Kenyatta vetoed that version earlier this week, suggesting a compromise 35% rate, which MPs have now approved, according to Kenyan media reports.

The new rate marks a massive increase from the existing 7.5% tariff on sports and 12% on gaming, and could cause major problems for the growing number of firms with designs on Kenya.

International firms like Betway and Dafabet have moved into the country over the past 12 months, while Victor Chandler’s new venture Bet Lion is also said to be targeting East Africa.

Bet Lion CEO Oliver Bates told EGR: “The new tax rate has limited impact upon us as Kenya is not a country we are entering in the short term. It is however on the horizon.

“Regardless of our entry, we hope the proceeds of this legislation are used to improve the standards of operators and the industry as a whole in Kenya. It will ultimately be positive if it leads to a more sustainable long term industry that benefits the broader development of Kenya. It is refreshing to see compromise with the proposed rate of 50% not being implemented. Operators will respond and adapt their businesses accordingly.”