Kenya to bring back 20% stake tax that led to Sportpesa exit

Kenya to bring back 20% stake tax that led to Sportpesa exit

Article brief provided by iGaming Business
  • Daniel O'Boyle, iGaming Business
April 24, 2022 4:36 PM
  • Daniel O'Boyle, iGaming Business

Kenya’s Treasury has set out plans to reintroduce the 20% tax on betting and gaming stakes that caused Sportpesa and Betin to leave the market in 2019.

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The country’s Treasury has published its 2022 Finance Bill, where it looks to increase the controversial tax on betting stakes from 7.5% to 20%. In addition to betting and lotteries, gaming and “prize competitions” are also covered by this levy.

In an analysis of the bill, professional services firm KPMG said that the government likely sought to use excise taxes to “bridge the revenue gap” caused by growing inflation.

In addition to the stake tax, the Treasury also aims to impose a 15% excise on for gambling advertisements.