Kenyan regulator moves to dispel betting tax fears for football pyramid
Betting Control and Licensing Board CEO Peter Mbugi says 20% tax will not have severe impact on leading football clubs
Kenya’s Betting Control and Licensing Board (BCLB) has moved to dispel fears over the reintroduction of the 20% withholding tax on sports betting among the country’s football clubs and authorities.
The reintroduction of the tax is set to be included in Kenya’s 2021 finance bill, which amends the country’s Excise Duty Act to include a 20% tax on bets wagered.
Reacting to the reimplementation of the tax, the chairmen of Gor Mahia and AFC Leopards decried the move, noting in a joint statement: “The enactment of this law will render all clubs currently supported and sponsored by various betting firms unable to continue with their operations.”
However, BCLB CEO Peter Mbugi said the new tax measures won’t impact football clubs in the east African country to the extent the club chairmen have suggested.
Mbugi said: “The 20% is not a new thing, it’s a reintroduction. It shouldn’t affect the cooperation the operators have with teams in this country. It shouldn’t in terms of the sharing of that amount [of money].
“Basically, businesses will not close, even if it reduces the amount of profits that the companies would have, then that’s fine, they can share [what] they have with the clubs.”
Mbugi went on to add that Kenyan clubs should take this policy decision as a turning point to become more self-sufficient and not to rely on the coffers of the gambling industry.
Mbugi added: “This is basically supporting the Kenyans to be able to do something but also I want to say the clubs should not entirely rely on these external supports, they must also try to find out what they can do for themselves.”
The Kenyan Premier League and its clubs have benefited greatly from sports betting, with more than £8.5m being ploughed into the league and its associated clubs via sponsorship agreements between 2016 and 2020.