Betting firms given lifeline as government scraps 20% excise duty

– Uhuru recently crapped excise duty on betting stake, which was seen as an open invite to betting firms back

– Betting firms are expected to resume operations after the new Finance Bill was signed

Kenyans elicited mixed reactions online after it emerged Sport betting firms might be making a comeback after President Uhuru Kenyatta scrapped the 20% tax on betting.

Uhuru signed the Finance Bill 2020 on Tuesday, June 30 which effectively scrapped the excise duty on bets staked.

As Kenyan Digest reported, a number of betting companies exited the market because of the hefty tax imposed.

One of the biggest casualties of the excise duty directive was giant firm Sportpesa, who also opted to walk away from the Kenyan market in September 2019.

Things are however looking up for lovers of betting as the removal of tax could mean a subtle invite of betting companies back in the country.

Kenyans are particularly keeping a keen eye on Sportpesa and when they would be making a return to the Kenyan market, where they enjoyed the biggest market among their rivals.

The firm, via their twitter page, took to address rumors of a return by saying it was in the works but no date could be mentioned at the moment.

“We do not have the exact timeline on when we shall resume. We shall communicate officially upon resumption,” a tweet from Sportpesa’s official page stated in response to a fan.

One interesting point to note in the scrapping of betting tax is that it came barely months after a close contact to Uhuru Kenyatta acquired crucial stakes at Sportpesa.

Nation reports that businessman Peter Kihanya Muiruri, Uhuru’s cousin, has acquired stakes in upto three companies that are part of the Sportpesa franchise.

The most notable stake is the one percent Kihanya owns at Pevans East Africa, which is the company that owns Sportpesa in the country.

At the time betting tax was slapped on companies, the government sought to tackle the rising cases of gambling addiction which had rendered most youths economically handicap.

Sportpesa then exited the Kenyan market, citing “the hostile taxation and operating environment in the country”.