Kenya MPs reject proposal to cut gambling tax from 35% to 15%

Kenya’s betting operators have lost their latest attempt to roll back the nation’s new 35% tax on gambling revenue.

On Saturday, local media outlet Daily Nation reported that members of parliament had voted against a proposed amendment to the country’s Finance Bill that would have reduced the 35% tax on gambling revenue to 15% while also reducing gambling operators’ payments to social causes.

On January 1, Kenya’s new uniform 35% tax on all gambling revenue kicked in, creating a harsh new economic reality for the nation’s betting, lottery, gaming and competition operators, who previously paid tax rates as low as 5% (lotteries) or 7.5% (betting).

State treasurer Henry Rotich was said to have personally lobbied MPs last week to reject the amendment recommended by the National Finance and Planning committee. Rotich’s efforts wouldn’t have come as much of a surprise, given that he originally supported a 50% gambling tax before cooler heads prevailed.