President Uhuru Kenyatta has recommended that betting, lotteries and gaming activities should be taxed at the rate of 35 per cent.
Uhuru said this in a memorandum to National Assembly Speaker Justin Muturi after refusing to sign Finance Bill, 2017, which was to amend laws relating to various taxes and duties.
He rejected the Bill on Tuesday after Parliament deleted a clause designed to discourage youth from engaging in betting.
The purpose of the amendment of Section 59 B of Cap 469 was to "discourage Kenyans, especially the youth, from betting, lottery and gaming activities instead of productive economic engagement, a vice that is likely to degenerate into a social disaster.”
The proposal, which read, “29. Section 59B of the Betting, Lotteries and Gaming Act is amended in subsection (1) by deleting the word “fifteen” and substituting therefore the word “fifty” was however dropped when Parliament passed the Bill.
Uhuru said: “This totally negates the spirit underlying the proposal to have the betting tax raised as pointed above."
Uhuru recommended that Clause 29 of the Bill be amended to replace "fifteen" with "thirty five".
On April 10, Uhuru said the
proposal for higher taxes on betting companies can be reviewed but noted the importance of controls.
The President 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.
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.
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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