Sportpesa Ltd and Betin Kenya have moved to court challenging KRA's decision to demand accrued taxes of over Sh14 billion that they allegedly owe the taxman.
KRA is demanding Sh11 billion from Betin and Sh3 Billion from SportPesa in taxes.
However, the two betting companies in their separate suits argued that the decision by KRA could affect their businesses and they would suffer irreparable losses.
KRA allegedly wrote notices to Safaricom and their respective banks demanding for the billions accrued in taxes.
SportPesa says that KRA has not carried out an assessment before they issued the demand.
"The funds held by Safaricom belong to individual players who placed bets through Sportpesa. Those funds do not belong to and are not held by Safaricom on behalf of SportPesa," the application reads.
They want the court to suspend the notices issued by KRA against them until the case is heard and determined.
Last month, the Ministry of health said at least 40 per cent of taxes on betting and gaming will fund the Universal Health Coverage.
The Finance Act imposes a 35 per cent tax on betting where 20 per cent is levied on winnings while betting firms remit 15 per cent.
