Treasury cabinet Secretary Henry Rotich with the budget briefcase outside Treasury. Photo: The Star
Betting has become a big business in Kenya in recent years with both young and old taking to it in droves.
However, the 'booming' business is set for one of its hardest hurdle after National Treasury Cabinet Secretary Henry Rotich hit the industry hard with new high taxes.
The taxes accorded to betting, lottery, gaming and competitions will thus be increased from the current rates of at least 7.5 percent to a uniform rate of 50 percent.
This simply means that from the lowest gambler who bets with Sh100, the proceeds he gets for instance if he wins an odd of 2 meaning he gets Sh200 maximum payout, then Sh100 goes directly to the government in taxes leaving him with Sh100 to share with the betting firm.
"Betting and gaming have become widespread in our society in an environment that is inadequately regulated," said Rotich.
"Its expansion is beginning to have social effects, in particular on the young and vulnerable members of the society," he added.
Other industries also hard hit are the manufacturers and importers of distilled liquor.
Spirits will henceforth be taxed Sh200 per liter up from Sh175, however, taxation on beer has remained constant.