Kenya’s Gambling Taxes Are Too High

January 10, 2018 Taxation in Kenya

Online blackjackNAIROBI – Kenya’s heavy-handed approach to taxing gambling operators may drive some businesses out of the country.

A new report issued by the international consultancy PricewaterhouseCoopers shows that the tax burden faced by gambling operators in Kenya is higher than any of its regional neighbours and most developed countries.

As of January 1st 2018 the rate of tax faced by gambling companies is 35 percent on all gambling revenues, with no allowances for deductions.

In comparison, the rate levied in Tanzania, South Africa, Uganda, and Rwanda, are 6 percent, 9.6 percent, 13 percent, and 20 percent respectively.

Similarly, Germany, the UK, and Canada have rates of 5 percent, 15 percent, and 20 percent.

The treasury claims that the high rate of tax is needed to protect vulnerable people and youth from the harmful effects of problem gambling.

However, the report’s authors and gambling providers are claiming that the rate of tax is encouraging a greater number of operators to establish their headquarters in low- x jurisdictions, and to move their business online.