- Head of public service Felix Koskei says they will work with a few operators that are ready to comply with the law.
- He spoke during the launch of the integration of the third batch of 20 betting companies.
The government has put on notice gambling operators evading taxes that their days are numbered even as the Kenya Revenue Authority (KRA) sets May 12 as the deadline to have their systems integrated.
Head of the public service Felix Koskei said on Monday that they will only work with a few operators that are ready to comply with the law.
He said while there are several companies currently operating in the country, only a few have shown the willingness to cooperate.
“We have programs to run and we expect all operators to comply with the law…we rather have a few that are compliant than a million that do not pay taxes,” said Koskei.
Koskei announced they will be introducing new stringent rules for companies seeking to get licensed or renew licenses to operate in the country.
The move, he noted, is aimed at weeding out operators hellbent on operating illegally.
The chief of staff spoke during the launch of the integration of the third batch of 20 betting companies.
KRA introduced the integration system last November with a pilot on 16 companies.
The integration which is undertaken jointly between KRA and Safaricom is aimed at increasing transparency and accountability in the betting and gaming industry.
It was done in two phases, KRA linking its systems with those of the operators in what it said was to seal loopholes of tax leakages as a result of a 30-day period.
Following the integration, the operators will be required to remit daily taxes on excise duty and withholding tax on winnings.
They are expected to remit a 7.5 percent excise duty on stakes and 20 percent withholding tax on winnings.
This, KRA said, will help the government collects its fair share of taxes from the sector.
Following the piloting of the integration process on the 16 betting companies last November, KRA says it has managed to collect Sh6.6 billion from the month until April this year.
Betting Control and licensing board (BCLB) chair Jane Makau who was present during the event said the new set of rules will be applied beginning July 1 when renewing the licenses.
There are about 170 licensed betting and gambling companies in the country currently.
According to KRA's representative Risper Simiyu, the real-time tax remittance provides a win-win situation for both the government and the operators.
Sportpesa was the first to be on-boarded having complied and integrated its systems.
As of June, last year, the sector was estimated to be holding around Sh50 billion in gross turnover.
The chief of staff challenged the firms to ensure responsible gambling that protects children and the vulnerable in the country.