The National Assembly has turned down Treasury’s proposal to reduce the gaming tax from 35 percent to 15 percent of revenue earned.
The proposed Bill, which was submitted to the National Assembly’s committee on Labour and Social Welfare, was rejected on the grounds that it undermines the consultations, the National Assembly, and court rulings that rejected a suit against the 35 percent charge on revenue.
Victor Munyaka, the committee’s chairman stated: “In light of the foregoing, the proposed amendment to sections 29A, 44A, 55A and 55B should be withdrawn.”
The proposed amendments of the sections in the Betting, Lotteries and Gaming Act read: “There shall be a tax to be known as betting tax chargeable at the rate of thirty-five percent of the gaming revenue. […] There shall be a tax to be known as lottery tax chargeable at the rate of thirty-five percent of the lottery turnover. […] There shall be a tax to be known as gaming tax chargeable at the rate of thirty-five percent of the gaming revenue.”
The Highest Betting Tax in the Region
According to PwC, Kenya’s betting tax is the highest in the region compared to South Africa which charges 9.6 percent, Uganda which charges 20 percent, and Rwanda which charges 13 percent. The tax is even higher than that of Germany (five percent), Las Vegas (6.5 percent), and Canada (20 percent).
Additionally, the firms in this sector are required to pay 30 percent corporate tax and to allocate 25 percent of their sales to causes that can impact the society.
