Kenyan punters feel the pinch as President Kenyatta signs new tax laws
- By: Brian Humphrey
- October 23, 2018
- LikeUnlikeLike
- 1586 Views
On September 21, just a day after chaotic scenes marred the passing of the Finance Bill 2018 by the National Assembly, Kenyan President Uhuru Kenyatta put pen to paper, triggering the bill’s passage into law.
The new radical taxation measures are meant to help the government raise Sh130 Billion (USD 1.3 Billion) to address the current budget deficit after the Kenya Revenue Authority (KRA) registered a slump in revenue collection.
Although President Kenyatta, through a memorandum forwarded to the National Assembly, recommended for the reduction of gaming tax from 35% to 15%, one which was approved, the burden has unequivocally been transferred to punters.
In what the government termed as a valiant effort to enhance equity and balance in taxation, the new tax laws have seen the introduction of a 20% tax on all winnings from betting, gaming, lotteries and prize competitions in Kenya.
Through expanding the net tax on winnings, the government hopes to raise Sh25 billion (USD 250 Million) from the current Sh8.7 Billion (USD 87 Million) collected from the gaming industry.
Cosmas Korir will unreservedly be one of the first people to feel the pinch of the new tax laws. Korir, who just three weeks ago worked as a Director of Agriculture in West Pokot County, recently won the Mega SportPesa Jackpot of Sh208 Million (USD 2.08 Million). He as such owes the taxman a staggering Sh41.6 Million (USD 416,000) in fulfillment of his tax obligations as per the newly passed laws.
Korir promised to share his winnings with two other friends who predicted five games apiece while he tried his luck with the remaining seven, although that remains to be seen given the radical nature of the revised taxes.
The former parliamentary aspirant predicted all 17 games correctly to become only the fourth Kenyan to win the Mega jackpot, after Samuel Abisai won Sh221 Million (USD 2.21 Million) in May last year, while three other winners shared Sh115 million (USD 1.15 Million) a month later.
Gordon Ogada holds the record for striking the biggest pot of gold in SportPesa history, as he took home Sh230 Million (USD 2.3 Million) in February this year.
Treasury Cabinet Secretary Henry Rotich also raised excise duty on all mobile money transfers from the previous 10% to 12%, whilst also introducing a 15% excise duty on telephone and internet data services.
This is in addition to the excise duty charged on all bank fees and other money transfer services that have risen by 10%: all this to aid in raising Sh20.2 Billion (USD 202 Million) of the Sh130 billion (USD 1.3 Billion) deficit.
The ominous tax measures to a great degree seems to have targeted the gambling industry, with the revised excise duty on internet data services and mobile money transfer services meant to discourage the prevailing betting culture among the Kenyan youth.
Regional telecommunication powerhouse Safaricom have recently reviewed prices for mobile data bundles, Fibre-To-The-Building (FTTB) and Fibre-To-The-Home (FTTH), as have Airtel and Telkom: Kenyans expected to feel the full pinch of the new tax laws when subscriptions expire at the end of the month.
Reduction of the gaming tax by 20% however spells delight for Kenya Rugby Union (KRU), Boxing Association of Kenya and Nakuru All Stars who could all see their SportPesa sponsorship reinstated.
Latest Kenyan betting news & sporting tips
[rm_recent_news tags=”Kenya, KPL” title=”” ajax=”true”]
You may also like
Join the Betting Planet team!
Are you passionate about sports betting? Sports news writers required TODAY!
Experienced preferred but not essential. (All apps considered).
View Careers at Race MediaTop Online Casinos
Latest Betting News
- Kokkinakis stars as Australia down USA in Davis Cup quarters
- Las Vegas Grand Prix 2024 betting preview & free predictions | F1
- EPL Matchweek 12 betting picks & odds | Premier League 2024-25
- La Liga betting tips, prop picks & best odds | Matchday 14
- Australia v India: Visitors drop selection hint for Perth Test
- Yan v Figueiredo betting picks & odds | UFC Fight Night preview
- Steelers @ Browns NFL Thursday preview & top picks | Week 12
- Texans @ Cowboys NFL Monday preview & free picks | Week 11
- ATP Finals 2024: De Minaur bombs out as Fritz reaches semis
- NFL Week 11 Sunday preview & betting picks | November 17, 2024
Casino Guides
- Safest online casino jurisdictions
- How to guides
- How to win at pokies
- How to play online pokies
- PaysafeCard online casino deposits
- MasterCard Online Casinos
- Online Casinos Accepting POLi
- 32Red Casino Review
- All Slots Casino Review
- Boombet Casino review
- Horse racing games at casinos
- Credit card deposits at online casinos
- Films about blackjack
- Live dealer casinos
- How to play live dealer blackjack party
- Online Blackjack
- Top online casinos 2024
- Online casino deposits
- MasterCard Online Casinos
- Online Casinos Accepting POLi
- PaysafeCard online casino deposits
- Online slots
- Playing Pai Gow Poker on the Internet
- Online keno
- Online poker
- Online poker tournament structures
- Real money online roulette 2024
- Online multi-wheel roulette – what is it?
- How to play online scratch cards in 2024
- Sit & Go online poker tournaments
- Skrill e-wallet deposits at online casinos
- Visa online casino deposits
Sports Betting Guides
Casino Games
Deposits & Withdrawals
Football
Basketball
Top Country Betting sites
- Angola
- Antigua and Barbuda
- Armenia
- Australia
- Azerbaijan
- Bahamas
- Barbados
- Belize
- Brazil
- Canada
- Dominican Republic
- Germany
- Ghana
- Grenada
- India
- Indonesia
- Italy
- Kenya
- Malaysia
- Malta
- Ireland
- Netherlands
- New Zealand
- Nigeria
- Norway
- Philippines
- Singapore
- South Africa
- Turkey
- Uganda
- Ukraine
- United Kingdom
- Vietnam
- Zambia
- Zimbabwe