• Malala said the allegations that some betting companies such as Betin and Sportpesa have not been paying taxes are baseless and unfounded.
• Atandi said the Finance Committee will look into the law and try to make its definition more clear.
Image: DOUGLAS OKIDDY
Twelve Members of Parliament have condemned the decision by the government to revoke operation licenses of some betting companies.
Led by Kakamega Senator Cleophas Malala, the lawmakers said the directive has rendered some Kenyans jobless.
Malala said the allegations that some betting companies such as Betin and Sportpesa have not been paying taxes are baseless and unfounded.
He added that collections from the two giant industry players form a big percentage of the taxes collected.
Senator Malala said taxation of customers' stakes is taxation of capital and represents a violation of the existing law, which only taxes the income.
He said deportation of some gaming operators was a blatant violation of basic human rights since they were duly registered.
This ruined their reputation and investment. They have their families here, we ask the government to consider them and allow them to reunite with their families.Kakamega Senator Cleophas Malala
Nominated Senator Isaac Mwaura said betting companies such as Sportpesa does not only sponsor sports but has been supplying people with disability with sun-cream lotion and brail materials for the blind.
Mwaura said companies suspended their sponsorship the moment they clashed with the government.
He said that some individuals who are among gaming competitors are miss-advising the President.
"This notion is coming from certain individuals who also happen to be competitors in the same business," Senator Mwaura said.
Nominated MP Godfrey Osotsi said the outcome will kill the sports industry in the country and has urged the Interior CS Fred Matiang'i to give the operating licenses back to the affected companies.
"We will not allow AFC and Gor Mahia to die because of someone who is mismanaging the sector," Osostsi said.
Alego Usonga MP Samuel Atandi said most gaming companies have fully complied to corporate and income taxes.
"Most of these betting companies have complied with both corporate and gaming taxes. The problem is with the taxation on winnings," Atandi said.
He has called upon the gaming investors and the KRA to sit and negotiate over the matter.
“KRA has to open negotiation with these companies so that they can agree on an amicable solution to solve this matter," Atandi said.
He added that the Parliamentary Finance Committee will look into the law and try to make its definition more clear.
Their stand comes after Sports betting firm, SportPesa cancelled its partnership deals with sports entities, citing unbearable business environment.
The gaming firm is among the 27 affected by the government’s decision to cancel their operating licenses and close their pay bill numbers and this has forced SportPesa to cancel all their partnerships for the second time since entering the Kenyan market.