Kenyan MPs offer gambling operators hope for tax relief

Kenya’s online sports betting operators may yet catch a break after local parliamentarians breathed new life into a plan to fix the country’s punitive gambling tax regime.

On Sunday, Business Daily Africa reported that Kenya’s Finance and National Planning Committee had proposed cutting the planned 20% tax on gambling winnings in half, while also cutting operators’ revenue tax rate from 35% to 15%.

Since January 1, Kenyan operators have been required to pay the new uniform 35% tax on all gambling products, be it sports betting, gaming, lotteries or prize competitions. The new tax was a significant step up from the previous rates, which for betting operators had been a mere 7.5%.

Some gambling companies suspended their Kenyan operations, claiming that the new taxes had made their business unviable. National Assembly Majority Leader Aden Duale then floated a plan to cut the 35% rate to 15% while offsetting the cuts by re-imposing a 20% tax on gambling winnings that was originally introduced in 2016 but was suspended due to implementation problems.