Matiang'i orders stringent vetting of betting firms before licensing

Matiang'i said the illegally operating firms have been a breeding ground for money launders.

In Summary

• Matiang'i directed the Board to ensure the firms have been cleared by the Kenya Revenue Authority (KRA), the Financial reporting Centre and Interagency security team.

• He added the measures are a bid to rid off any unscrupulous and unlicensed gaming and betting firms that have been fleecing customers and evading tax.

Interior CS Fred Matiang'i on Friday, February 26, 2022.
Interior CS Fred Matiang'i on Friday, February 26, 2022.
Image: ALVIN RATEMO

Interior CS Fred Matiang'i on Tuesday ordered the Betting Control and Licensing Board (BCLB) to only license firms that are tax compliant from July 1.

In a statement released, Matiang'i directed the Board to ensure that the betting and gaming firms have been cleared by the Kenya Revenue Authority (KRA), the Financial Reporting Centre and the Interagency security team before being licensed to operate.

"The BCLB is to continuously monitor, identify and report to the Communications Authority of Kenya all unlicensed local and foreign betting and gaming websites for blockage of access," he said.

The CS also directed the Board to initiate an immediate blockage to mobile cash transfer numbers (pay bills) linked to betting and gaming companies operating illegally.

He added that the measures are a bid to rid of any unscrupulous and unlicensed gaming and betting firms that have been fleecing customers and evading tax.

Matiang'i said the illegally operating firms have been a breeding ground for money laundering and financing criminal activities.

This is the second time since 2019 that the CS is directing betting firms to seek fresh renewal of licenses upon proving tax compliance.

The firms also had to prove that they were sufficiently liquid and had performed well financially for the past four years.

Last week, the Board launched an investigation on some of the firms for diverting their funds to politicians.

It reported that the Corporate Social Responsibility (CRS) funds were being used to finance the ongoing campaigns.

The Board further said that the majority of the firms are unlicensed in Kenya and so do not generate tax for the country.

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