Government-backed gambling company, SportPesa, files legal action against the Kenyan government due to allegations of excessive taxation.
In a recent development, SportPesa investor Bradley Trading has taken legal action against the Kenyan government, challenging the government's decision to increase gambling taxes. The increase, announced by Treasury Secretary Henry Rotich, has seen betting and gambling services taxed at a rate of 50%.
Bradley Trading, in a series of lawsuits, has accused the government of failing to conduct an adequate review of the offered services and conditions before implementing the tax hike. The lawsuits name Rotich, Interior Cabinet Secretary Joseph Nkaissery, Attorney General Githu Muigai, and the Betting Control and Licensing Board as defendants.
The investment firm argues that the increase exceeds Rotich's powers as there was no prior government approval of his actions. Moreover, they claim that the government failed to discuss the legislation with the industry, as is customary in such matters.
The increased tax has been justified by the government's desire to reduce gambling, which is alleged to have been negatively impacting Kenyan society. However, the move has not been met with unanimous approval. Multiple industry and sports bodies have objected to the decision, citing potential job losses and the impact on the economy.
Previously, gambling tax rates stood at 7.5% for betting, 12% for lottery, and 15% for gaming. Bradley Trading is requesting the Kenyan government to suspend plans of increasing sports betting and gaming taxes, pending a thorough review and industry consultation.
As of now, the current status of these lawsuits is unclear. Further updates on the legal proceedings can be expected as the case progresses. It is worth noting that such specific legal updates might be found in Kenyan legal databases, news outlets covering Kenya's gambling industry, or official statements by Bradley Trading.
- The legal action by Bradley Trading against the Kenyan government, as seen in a series of lawsuits, alleges that the government overstepped its authority by failing to conduct a thorough review of the gambling services before increasing taxes, and by not consulting the industry as is customary.
- The investment firm argues that the increase in gambling taxes exceeds the powers of Treasury Secretary Henry Rotich, as it lacked prior government approval, and also claims that the government failed to discuss the legislation with the industry.
- Bradley Trading, in response to the 50% increase in gambling taxes, has called for the Kenyan government to suspend plans of increasing sports betting and gaming taxes, pending a thorough review and industry consultation.
