The National Assembly has launched investigations into the operations of betting and gaming companies in the country in a bid to tame the vice that has taken a toll on the country's youth.
The National Assembly Committee on Finance and National Planning is expected to present a report on the operations of the betting and gaming companies next Thursday, with lawmakers demanding critical details of their operations.
National Assembly Speaker Moses Wetang'ula directed the committee, chaired by Molo MP Kimani Kuria, to submit its report next week on the betting frenzy.
"I know people who have been affected by this betting," Wetang'ula said.
The issue was raised by Gilgil MP Martha Wangari, who specifically mentioned an aviator betting game that she said was being advertised on one of the local popular radio stations.
Ms Wangari said the Aviator gambling has been promoted so much in local media that it is now stifling the livelihoods of families in rural and urban areas.
The lawmaker noted with concern that the practice is popular among young people, and both men and women are also deeply involved in it.
MPs are concerned about cases of students gambling with their school fees and parents raiding their savings to gamble.
Ms Wangari said there has been an increased wave of gambling companies registering in the country, with advertisements of such sites being beamed on mainstream media during prime time.
"This game of chance called Aviator, in which a virtual plane flies and carries odds for the players, has become addictive … and has left many destitute," she said.
Legislators expressed concern that gaming activities hyped on local TV stations promise instant winnings with little effort and one does not need any knowledge of football or any team to participate in the game.
In the investigations to be conducted by the Finance Committee, the lawmakers now want the government to provide the legal status of Aviator gambling in the country, the taxes and revenues collected from gambling and betting activities in the country.
The MPs are also demanding statistics from the Ministry of Planning on how much Kenyans spend on betting and gambling activities annually. In addition, the committee will inform the House of the steps being taken by the Betting and Licensing Board to control the proliferation of advertisements on audio, visual and print media relating to Aviator game.
The Betting and Licensing Board is also expected to provide the Finance Committee with information on all ongoing and completed disciplinary cases against errant betting and gaming companies and media stations in the past year.
The move to tame the betting craze comes at a time when data shows that more Kenyans are now deeply involved in gambling.
According to Geopoll report “Betting in Africa 2024”, 83 percent of Kenyans surveyed admitted to having placed a bet.
Currently, the betting industry attracts an excise tax of 15 percent on stakes, a withholding tax of 20 percent on net winnings, and a betting and gaming tax of 50 percent.
Betting companies are taxed on gross gaming revenue, which is turnover less winnings paid out. They also pay corporation tax on profits.
Data from the Kenya Revenue Authority (KRA) shows that in the last eight months to March this year, the taxman collected Sh12 billion in form of tax from betting companies.
According to statistics, Kenyans spent Sh766 billion on betting last year, which works out to about Sh2.1 billion a day and over Sh24,000 every second.
