Betting Firms Integration Into KRA System

Betting firms integration into the Kenya Revenue Authority’s (KRA’s) tax system boosted revenue collection during the 2023/24 financial year.

The taxman recorded a 26.2 percent growth in revenue collection from gambling activities, reaching Sh24.2 billion, up from Sh19.2 billion in the previous year.

”The system integration gave KRA real-time access to 111 companies in the gaming and betting sector that have been on-boarded on the Authority’s Tax System, thereby streaming revenue collection from the sector,” – said KRA in a statement.

The taxman, through the Betting Control and Licensing Board (BCLB), had in August 2023 introduced a comprehensive tax structure applied to the betting and gaming sector.

This included a 15 percent betting tax on revenue generated from betting, a 15 percent turnover tax on all gross earnings, a 20 percent excise duty on amounts staked in betting activities, and a 20 percent withholding tax on winnings from betting, lotteries, gaming, and prize competitions.

The taxes, however, forced a number of betting companies to cease their operations in the country.

In May, betting company Betsafe announced its exit from the Kenyan market amid heavy taxation.

It became the latest punter service provider to abandon Kenya, which includes big players who also wound up their Kenyan operations owing to the unsustainable tax regime.

Last year, for instance, Betin and Betway exited the country.

Source: capitalfm.co.ke

About Post Author

Samuel

I am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos.

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Samuel

I am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos.