Uhuru defends 50% increase on betting taxes, says state open to talks

The proposal for higher taxes on betting companies can be reviewed, President Uhuru Kenyatta has said, but noted the importance of controls.

Uhuru said the companies can hold discussions with relevant government organisations.

"I know there is a big cry in the gaming industry because of the 50 per cent tax but we can sit down and engage with the affected parties," he said.

"We were very concerned about

betting

among school-goers so we made it difficult for people to bet. We want people who bet to have their money go to constructive projects through tax."

He spoke on Monday during the launch of the information portal on Jubilee successes.

The portal will allow the public to frequently access, request and query programmess, projects and election pledges made by the Jubilee in 2013.

Via

, they will get details of the governments investments for the past five years it has been in power.

Gem MP Jakoyo Midiwo, who drafted the gambling bill, warned that the practice will break Kenya's economy and likened controlling the "disease" to dealing with the activities of the mafia.

Midiwo said he had learned of a person who makes Sh200 million through gambling.

"The state should be worried since that person can overthrow a government," he said, noting a lot of money is made when an average of six million Kenyans place Sh100 bets daily.

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While reading the 2017/18 budget at Parliament on March 30,

Treasury CS Henry Rotich noted that betting and gaming have become widespread.

Rotich proposed the taxes be raised from 7.5 per cent (betting), 12 per cent (lottery), 15 per cent (gaming) and 15 per cent (competition), to the 50 per cent.

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Bradley Trading, in which SportPesa has major shareholding, has challenged the decision to increase taxes levied on betting companies.

The company has sued Rotich, Attorney General Githu Muigai, Interior CS Joseph Nkaissery and the Betting Control and Licensing Board.

Bradley is seeking orders to quash the decision to increase the tax. It also wants the order suspended pending the hearing and determination of its case.

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