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SportPesa Issues Lawsuits Against Kenya On Grounds of Increased Taxes

SportPesa Issues Lawsuits Against Kenya On Grounds of Increased Taxes

Several lawsuits against the Kenyan government have been issued by SportPesa investor Bradley Trading following the authorities’ decision to increase gambling tax to 50%.

Essentially, Treasury Secretary Henry Rotich rocked the industry by announcing a 50% tax on all betting and gambling services on the territory of the country. Previous rate levels were 7.5% (betting), 12% (lottery) and 15% (gaming). Rotich justified this measure with the desire of the government to reduce gambling which had allegedly been crippling Kenyan society.

The decision has faced objections from multiple industry and sports bodies.

Bradley Trading went as far as filing lawsuits against Rotich as well as Interior Secretary Joseph Nkaissery, Attorney General Githu Muigai and the Betting Control and Licensing Board.

The investment firm pointed out that the government had neither discussed the legislation with the industry nor conducted an adequate review of the offered services and conditions. Moreover, according to Bradley Trading, Rotich has exceeded his powers as there was no prior government approval of his actions.

The request is for the Kenyan government to suspend plans of increasing sports betting and gaming taxes.

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