Treasury moves to take 20pc of betting stakes
The number of betting firms licensed to operate in Kenya increased by 29 from September last year as increased taxation failed to deter the entry of more firms into the multi-billion shilling industry.
A list published by the Betting Control and Licensing Board (BCLB) shows that there were 128 licensed firms at the end of January, up from 99 in September last year.
Some of the new firms are Ditimac Limited, Sky Gaming Kenya, Genius Bet, Gameshow Limited, Duchang Kenya, Sahara Game Technology, Life is a Game, Meziz Bet, Masaa Bet, Sabanzuri Limited and Mawingu Technologies.
The increase in the number of betting firms comes despite high taxes where firms are taxed on the gross gaming revenue at a rate of 15 per cent besides paying corporate tax of 30 per cent on profits.
There was a proposal tabled in Parliament last year to have betting firms pay a gaming levy of 13 per cent of their gross gaming revenue.
Excise tax on betting stakes was increased to 12.5 per cent from 7.5 per cent in July last year in addition to a 20 per cent withholding tax on every winning bet.
Betting firms are also required to pay income tax at the rate of 16 per cent adding to the annual licensing and compliance fees that they must pay to the regulator.
KRA last year started integrating betting firms on its platforms to have a real-time view of the industry in a bid to seal tax evasion avenues.
The new entrants are angling for a share of the gambling cake that is currently in the hands of Milestone Games which trades as SportPesa.
The continued rise in popularity of the betting craze has rattled the government, prompting continued increments in the taxation on gamblers and betting firms.
For example, the National Treasury has in the Finance Bill, 2024 proposed to increase tax on betting stakes to 20 per cent.
The proposal is meant to reduce the appeal of betting to millions of Kenyans, notably, the unemployed and youth who have turned to gambling in the hope of making quick cash to foot their bills.
Gamblers staked Sh88.5 billion worth of online bets in the financial year that ended in June 2023, or Sh242 million daily, highlighting how betting has turned into a full-time economic activity.
