Shocking tax increase for gambling operators in Kenya

20 Jun 2017

gambling kenyaBad news for Kenya’s gambling operators. After the legislative session among the president of the country, Uhuru Kenyatta and Kenyan lawmakers, the tax for gambling in the country will go up to 35% from 7.5%.

President Kenyatta, refused to sign the Finance Bill, as he had requested tax obligations to go up to 50%, however, the legislators denied that. Finally, a compromise was made at the rate of 35%.

This percentage has offered a middle ground solution, in order to avoid the Finance Bill's twist in the wind due to continued disagreement.

Kenya is considered to have one of the most mature and commercial gambling markets in Africa. According to industry experts though, these developments, will lead to new challenges for sports betting, gaming and lottery operators.

President Kenyatta and Treasury Secretary, Henry Rotich, the man who proposed the initial 50% tax law, persist on their view that the increased tax rate is the only way to "protect the exposed youth from the dangers of gambling".

iGaming experts are closely watching the consequences of the legislation changes and are already speculating on whether operators will continue to view Kenya as an attractive market under the new taxes.

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