Kenyan Gambling Companies Face New Advertising Restrictions
While Kenya’s betting companies are possibly receiving their long-awaited tax relief, they may face new restrictions in terms of how they can advertise their products.
According to a report by Kenyan media outlet The Star, the National Finance and Planning Committee of the Kenyan parliament has recommended a 20% reduction in uniform tax on all gaming revenue. This will bring the tax rate from 35% down to 15%. The Committee has also suggested lowering the share directed towards social causes from 25% to 5%.
The 35% uniform tax was introduced on 1st January, despite gaming operators’ opposition based on the concern that the new rate would cause a 50% drop in their margins. As a result, some betting companies decided to cut down their local operations, while some others, for example, SportPesa, ceased their sponsorships with local sports.