It is a much awaited event for Kenya’s betting industry as the taxes introduced in 2019 have become a controversial question.
Heavy taxes led to the decline in market revenue
Being an extensively discussed topic for three years, finally, betting taxation has been reconsidered by the Finance Committee. Speaking about the background of the change, it is worth mentioning the government’s decision to increase the tax rate from ten percent of stakes to twenty in 2019. This caused many negative consequences for the betting industry. Among them are several leading operators leaving the market and, as a result, falldown of the revenue.
The Kenyan betting market got the opportunity to improve financial figures. The Committee came to the conclusion that the industry representatives’ doubts about the taxation law weren’t groundless. The country’s president signed the bill on the cutdown taxes into law last year. However, later, the levy was again increased to twenty percent. The Finance Committee has reconsidered the tax law this year. The government body has revamped the current legislation and decreased the tax to 7.5 percent.
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