Mr. Jakoyo Midiwo: He has sponsored the gaming bill, which could be law. Photo/courtesy
Barring any major disruption of parliamentary business, Kenya could have a new betting law by end of May when the 11th Parliament’s term comes to a close.
The proposed law, the Betting, Lotteries and Gaming (Amendment) Bill, 2016, has sparked debate as to how Kenya’s fast-growing gambling industry should be regulated and taxed.
Gem MP Jakoyo Midiwo, the sponsor of the Bill, has accused the industry’s bookmakers of using legal loopholes to evade or avoid taxes.
Industry players and regulator have, however, denied the allegations, compounding the confusion surrounding taxation of the gambling industry.
In particular, punters (players) have been left wondering whether they are required by law to account for tax on their winnings.
Many ordinary Kenyans who have been caught in the sports betting craze are often asking whether they would be required to pay any tax were they to win one of the many multi-million shillings jackpots.
In order to answer this question, it is important to understand how the tax regime for the gambling industry has evolved in Kenya.
The first attempt to tax betting and gaming winnings was first made in mid-2012 through the Finance Act. That law introduced a 20 per cent withholding tax on winnings from betting and gaming.