Kenya lottery operator files litigation against government over gambling tax increase

The fall-out from the Kenya government’s decision earlier this year to increase gambling taxation to 35 percent across the board (see previous reports) continued this week with the news that local lottery operator Pambazuka has filed a High Court challenge on the issue, citing the Betting Control and Licensing Board, the National Assembly, the Kenya Revenue Authority Commissioner-General and the Attorney General .

The lottery operator’s filing claims that the tax increase is unconstitutional because it was enacted not as a standalone and specific measure, but as part of the national budget, precluding public input on the issue.

The filing notes that the significant tax hike raises the risk that Pambazuka and other gambling operators in Kenya will become unviable as businesses and may collapse or have to close.

The tax increase is set for implementation on January 1st next year.