Kenyan traditional football giants Gor Mahia and AFC Leopards, have sharply differed with the government over the re-introduction of the 20 percent excise duty on betting.
While unveiling the 2021/2022 budget at Parliament buildings on Thursday, Treasury Cabinet Secretary Ukur Yattani said the decision to reintroduce the tax measure was in response to the grave concerns Kenyans continue to express about the detrimental effects of betting on the general public.
“Excise duty on betting shall be twenty percent of the amount wagered or staked,” said Yatani.
"Betting has become widespread, resulting in negative social effects. I propose to reintroduce excise duty on betting at the rate of 20% of the amount wagered," Yatani announced.
The tax was initially introduced in 2019 but shot down in July 2020 after betting firms plying trade in the country successfully lobbied to have the Finance Act 2020 amended, citing huge losses.
Immediately after Yatani's speech, arch-rivals Gor Mahia and AFC put aside their longstanding differences on the pitch to pen a strongly-worded statement lashing out at the government for unwittingly smothering the growth of Kenya's most popular outdoor sports.
Gor’s Ambrose Rachier and his AFC Leopards counterpart Dan Shikanda, expressed fear that the move was likely to pour cold water on the huge strides made thus far by current top-flight league sponsors BetKing, and domestic cup sponsors Betway who have pumped vast funds into the game.
"As we await the National Assembly pronouncement of budget policy highlights 2021/2022, we wish to bring to the attention of the public; members of parliament, and the government the potential negative impact envisaged by the sports sector and particularly the football sector in Kenya, should the 20% excise tax be enacted," the statement said.
The two mandarins stated that betting had continued to stream in revenue for local clubs amidst grave financial constraints occasioned by the outbreak of the coronavirus pandemic.
“The enactment of the 20% excise tax will unequivocally rule out continued sponsorship of football clubs across all tiers (National Super League, Division 1 and County Leagues), with the net effect of rendering the operations of most of the league teams unsustainable,” said the statement.
