Kenyan Regulator Encourages Players to Practice Responsible Gambling

In anticipation of the decision Kenya Revenue Authority (KRA) regarding tax on gambling betting CEO of Kenya council for the control and licensing of rates (BCLB) urged the country's players to practice more responsible play.

General manager Peter Mbugi emphasized that excessive gambling can lead to addiction and has broader social consequences for both families of players and for the country as a whole.

“The game itself, when played responsibly, is good fun, but when it is turned into a livelihood, this is where the problem starts,” he commented.

“When people bet to earn their living, that’s where the trouble starts, because as soon as you make your first bet of 100 shillings and it’s lost, you go looking for another 100 to save the 100 that was lost – you come, you put it down, it is lost. You go and get another 100 to save the lost 200.

“That's how a person gets involved and that's how they become addicted, and when you get addicted you become a problem gambler, then you become a problem for yourself, you become a problem for your family, you become a problem for society, and eventually you become a problem for the country because now you become a cabbage who can't generate an idea other than to place a bet because you think you can get rich without sweating."

Mbugi later went into detail about the KRA's decision to introduce a general betting tax for all gambling verticals last month as part of the 2021 Finance 2021 revision of the nation's 2021 Finance Act.

“20% is not a novelty, it is a reintroduction,” he clarified. “This should not affect the cooperation of operators with teams in this country. It should not be in terms of the distribution of this amount of money, because businesses will not close.

"Even if it reduces the amount of money and profits that companies will have, then this is normal, because they can share the profits with the clubs."

However, the 20% tax was not eventually introduced, but was drastically reduced to 7.5%, a significant boost to the Kenyan betting and gambling market.

The proposed tax rate of 20% was suspended following a last-minute injunction from the Nairobi High Court, which required the KRA to justify "doubling the tax rate originally set at 10%".

Source - KTN News Kenya YouTube Channel

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