Kenya to impose 20% tax on all gambling winnings

Kenya’s gamblers are crying foul after the government revived controversial plans to impose a 20% tax on gambling winnings.

On Thursday, local media reported that Kenya’s government had tabled a draft of the Tax Laws (Amendment) Bill 2018 in Parliament on Wednesday. Among the bill’s more controversial provisions is the imposition of a 20% tax on all lottery, betting and gaming winnings.

Assuming the new Bill is adopted, Kenyan gambling operators would be required to withhold 20% of players’ winnings on behalf of the taxman. A similar withholding system was abandoned in 2016 due to myriad problems associated with its implementation but the government appears confident that it has now sorted out these issues.

The draft Bill follows the imposition on January 1 of the new uniform 35% tax on gambling operators’ revenue. Kenyan sports betting operators, who had been paying only 7.5% tax, vigorously protested this change, saying it made their business untenable and would force them to pass on the costs to their customers.