Rotich proposes punitive betting tax hike to 50pc

National Treasury Cabinet Secretary Henry Rotich on his way to present the 2017/2018 budget statement on March 30, 2017. PHOTO | SALATON NJAU | NMG 

By LYNETTE MUKAMI

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Summary

• Treasury CS says tax revenue from betting firms to go towards development of the country's arts and culture industry.
• He made the proposal while decrying the deleterious effects of the increasingly popular activity that has captured the imagination of Kenyans.
• Mr Rotich also proposed a monthly stipend of Sh2,000 for persons above the age of 70.

Related Downloads:  FULL BUDGET SPEECH

The Treasury Cabinet Secretary has proposed a hike in taxes payable by betting, lottery and gaming industry players from the current range of 7 to 15 per cent to a uniform rate of 50 per cent.

During his Budget presentation at Parliament Thursday afternoon, Mr Henry Rotich indicated that the tax revenue from betting firms would go towards development of the country's arts and culture industry.

He made the proposal while decrying the deleterious effects of the increasingly popular activity that has captured the imagination of Kenyans.

Mr Rotich's announcement is only the latest in a raft of measures by the State aimed at curbing the vice.

READ: Budget speech 2017 - as it happened

The Kenya Revenue Authority (KRA) previously moved to curb importation of gaming equipment unless approved by the Betting Control and Licensing Board (BCLB).

Kenyan sports betting giant SportPesa is among the players that has termed Treasury's planned imposition of hefty taxes as counter-productive, saying any planned increases in tax should be done in consultation with stakeholders.

READ: SportPesa cries foul over plan to raise taxes for betting firms

ALSO READ: Scramble for control as gambling gets out of hand

Care for the old

Mr Rotich also proposed a monthly stipend of Sh2,000 for persons above the age of 70, saying Kenya is a country that cares for its old.

In addition to the allowance, he proposed a health cover through the National Health Insurance Fund (NHIF) to cater to the needs of the country's elderly.

Sh5 billion was allocated to leasing of more medical equipment the 2017/2018 financial year while Sh500 million was set aside for sanitary towels for poor school girls.