EXPERTS KENYA Kenya to re-increase controversial gambling rate tax to 20% 4 months ago Samuel Post Views: 271 The Kenyan betting and gaming sector has encountered a major fiscal hurdle, as the country’s government reimposes a 20% tax on wagering stakes as well as doubling its taxation of foreign tech firms. Publishing the 2022 Finance Bill, the Treasury detailed that the 20% tax rate would be reintroduced, just under two years after it was abandoned in 2020 after substantial criticism from the Kenya Betting Control Board (BCLB). Described by the BCLB and operators active in Kenya at the time as a ‘market killer’, the 20% taxation saw several betting firms depart the country such as Betin and SportsPea – exacerbated by an additional 20% tax on player winnings – although brands such as Betsson’s Betsafe have since found success in the market. Kenya’s Treasury Cabinet Undersecretary Ukur Yatani stated his intent last year to reintroduce the 20% tax rate, and the Finance Bill has been submitted to the Departmental Committee on Finance and National Planning after its first reading. As well as raising the tax on stakes, the Kenyan Revenue Authority (KRA) has proposed to increase digital tax service (DST) to 3% of the gross value of online transactions in the financial year, seeking to take advantage of an increasingly digitised economy. The current DST stands at 1.5%, and will increase from July onwards. Although predominantly targeting firms such as Amazon and PayPal, the raise could have an added effect on the betting and gaming industry, due to the impact of revenues of solution, software and payments providers. Kenyan authorities are targeting increased revenue via the tax rate, with the current 1.5% rate currently projected to generate around Sh13.9 billion by June 2024, with the tax levied on digital content provided by international companies such as music, games, films and e-books. Writing in the Finance Bill 2022, Ukur Yatani explained: “The Third Schedule to the Income Tax Act is amended by deleting the expression ‘one-point-five percent’ appearing in paragraph 12 (digital service tax rate) and substituting.” Source: sbcnews.co.uk 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. See author's posts SamuelI am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos. Facebook Twitter LinkedIn Email Print Tags: Kenya, Kenyan Revenue Authority, tax Continue Reading Previous The growth of online gambling in AfricaNext Betfred transaction on the radar More Stories EXPERTS NIGERIA Key provisions in Nigeria’s new anti-money laundering law 16 hours ago Samuel EXPERTS WORLD NEWS TVBET will visit SBC Summit Barcelona 18 hours ago Iwo Bulski EXPERTS WORLD NEWS China restates action on overseas-bet fugitives 2 days ago Iwo Bulski EXPERTS GHANA Africa’s fintech, crypto leaders to meet at Ghana summit 3 days ago Samuel KENYA ONLINE African Countries With Gaming Industry 3 days ago Szarlot EXPERTS NIGERIA Court confirms federal body as sole Nigerian gaming regulator 3 days ago Iwo Bulski BETTING KENYA Taxman clears 105 betting companies to get permits 5 days ago Szarlot EXPERTS HOT NEWS 5 key challenges of doing business in Africa 5 days ago Samuel BETTING KENYA Gambling operators ignore orders to close during the election 1 week ago Iwo Bulski EXPERTS SOUTH AFRICA BMM South Africa gets licensed to provide compliance testing services in Tanzania 1 week ago Iwo Bulski EXPERTS WORLD NEWS WhatsApp allows people to sneak out of group chats 1 week ago Samuel BETTING KENYA Kenyans spend over KSh 300b on bets, cigarettes and liquor yearly 1 week ago Szarlot Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ This site uses Akismet to reduce spam. Learn how your comment data is processed.