Kenya gambling operators face new advertising restrictions

Kenya’s gambling operators may yet receive their long-awaited tax relief while possibly facing new restrictions on their ability to market their operations.

On Sunday, Kenyan media outlet The Star reported that the Kenyan parliament’s National Finance and Planning committee had recommended reducing the 35% uniform tax on all gambling revenue to 15%, while also cutting the 25% share directed towards social causes to 5%.

Media reports from June had already signaled the committee’s intentions to reduce the tax, and it’s not clear from this new report that the tax plan has actually made any concrete forward progress. That said, the proposed reduction in social cause funding won’t win the already vulnerable gambling sector any brownie points from the general public.

The 35% tax rate was imposed on January 1, despite betting operators arguing that the new rate would cut their margins by nearly half. Some operators opted to curtail their local operations while others like SportPesa withdrew their significant sponsorship of local sports. SportPesa has since renewed some of these deals, albeit at reduced rates.