SBC News SportPesa investor issues multiple lawsuits against Kenya Treasury's 'improper' tax hike

SportPesa investor issues multiple lawsuits against Kenya Treasury’s ‘improper’ tax hike

SportPesa investor Bradley Trading has moved to challenge the Kenyan government regarding its increased gambling/betting industry tax hike to 50%.

Presenting its 2017/18 Kenyan National Budget last March, Treasury Secretary Henry Rotich shocked industry stakeholders by announcing a blanket 50% tax on all licensed betting and gambling services.

The majority of industry stakeholders expected the Treasury to announce an increase in taxes but were shocked by Rotich punitive actions. Kenya’s Treasury had increased taxes on all forms of gambling from current rates of 7.5% (betting), 12%(lottery) and 15 % (gaming) to 50% moving forward.

Explaining the Treasury’s decision, Rotich stated that the Kenyan government wanted to curb gambling which had become widespread within Kenyan society.

However, the decision was quickly criticised by numerous industry and sports bodies, which stated that Rotich had crippled the industry and crucial funding for Kenyan sports initiatives.

Seeking to halt the progress of Rotich’s budget proposal, Bradley Trading an investment firm with several assets in Kenyan gaming has issued lawsuits against Rotich, Interior Secretary Joseph Nkaissery, Attorney General Githu Muigai and the Betting Control and Licensing Board.

Stating its case, the investment firm detailed that Rotich budget had been inadequate for proper legislation, as the government had not consulted the industry or carried out an adequate review of industry services and conditions.

Furthermore, Bradley Trading stated that Rotich actions were ‘in excess of his powers in increasing an industry tax burden’, Rotich could therefore not increase taxes without government approval.

As a result of its lawsuits, Bradley Trading has requested the  Kenyan government to halt any plans of increasing sports betting and gaming taxes.

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