Kenyan president greenlights betting tax reduction
Tax reduces from 35% to 15%, with bettors taxed at 20% of winnings
Kenyan president Uhuru Kenyatta has signed the 2018 Finance Bill into law, authorising the reduction of the countries controversial 35% tax rate on betting to 15%.
In a reportedly “chaotic” session of the Kenyan Parliament on Friday, the president signed off on the Finance Bill, approving several changes to Kenya’s existing financial structures.
Included within the bill were measures to reduce betting taxes from 35% to 15%, while introducing a 20% tax on betting winnings for Kenyan punters.
The signing of the bill into law should end a turbulent period for the Kenyan sports betting market, which has reacted unfavourably to the 35% tax rate ever since it was introduced in January.
Operators including SportPesa and Betika removed their sponsorships of Kenyan sports teams in protest at the increased tax rate, before signing reduced and amended deals later in the year.
Kenyan legislators have tried several times to introduce legislation to reduce the tax on betting, firstly in the Tax Laws (Amendment) bill 2018 before it was dropped due to parliamentary pressure and in the Finance Bill, which was initially rejected by Kenyan MPs who once again called for the removal of any reduction.
However, president Kenyatta refused to sign the Finance Bill into law unless the measures to reduce betting taxes were re-introduced, triggering furious debate in the Kenyan parliament, which culminated in Friday’s signing of the bill into law.