Kenya imposes new gambling taxes; mobile betting leads to surge in money transfers

Kenya has imposed new taxes on gambling operators after mounting concerns over the proliferation of gambling and the idea that the government was not getting its cut.

On Tuesday, Kenya’s parliament approved a new Finance Bill, which will require betting firms to pay 7.5% of net revenue, while gaming companies will pay 12% and lottery operators will pay 5% of turnover. The new tax regime could take effect as early as next week.

The tax changes were originally part of a new Betting, Gaming and Lotteries Bill, which had undergone second reading in Parliament last week. But the bill was scrapped and its tax provisions were transferred to the Finance Bill at the request of the the Treasury. New gambling legislation that will impose tighter regulations on the sector is reportedly under development.

Kenya has one of Africa’s more liberal gambling markets, having witnessed the launch of the first domestic online betting site way back in 2011. There are now over a dozen digital platforms catering to Kenyans’ gambling needs.