The Kenyan government hopes a five-fold tax hike on online gambling can deter the country’s youth from the practice, while at the same time use the revenue obtained to fund sports and cultural activities.
President Uhuru Kenyatta on June 21 signed a Finance Bill that increased the tax rates for betting, lotteries and gambling from the current rate of 7.5% to 35%.
Betting firms condemned the move saying the huge hike would result in loss of jobs and the defunding of corporate social activities by the players in the industry.
Football authorities also blasted the move, saying the repercussions would cripple the industry.
Alreade, SportPesa, the East African country’s leading online sports betting platform has confirmed that when the bill comes into force, it will withdraw its sponsorship of the Kenyan Premier League and the various teams it sponsors, including local giants Gor Mahia and AFC Leopards.
Proponents of the tax hike argue that the move would deter the young generation from engaging in the practice.
Kenya is currently the third-largest gambling market in Africa, behind South Africa and Nigeria. Three-quarters of 17-to-35 year olds in Kenya admit to having placed a bet, according to a recent survey.
Some gamblers in Kenya have been reported to have committed suicide after losing their bets, one doing so after staking his school fees in a English premier League game.
With the thriving betting industry in Kenya, more than 20 betting firms have set up base there, hoping to get a slice of the gamblers’ moneys.
