Kenya parliament dismisses tax hike

Kenyan Parliamentarians reversed a decision Tuesday, that would have raised betting taxes to a punitive 50 percent.

The decision approved late last week was revisited after majority leader of the National Assembly of Kenya, Aden Duale, invoked provisions of Standing Orders to return four sections of the Finance Bill, 2017 back to Parliament for a second vote.

Industry observers expected the rate would be negotiated down to around 35 percent in today’s Parliamentary session but were pleasantly surprised when the rate was returned to the 2016 level of 7.5 percent on gross profit. Casinos and other gaming companies will be taxed 12 percent, lotteries at five percent and prize competitions at 15 percent.

Parliamentary members reiterated the sector should be regulated but not through “counter-productive” taxation.

The Finance Bill 2017 now awaits Presidential signature.