NAIROBI, Kenya, Apr 4 – Centum Investments Director Dr. Chris Kirubi has welcomed the move by the government to raise tax for the Betting, Lottery, Gaming and Competition Industry to a standard 50 percent.
Kirubi says the move will be a wakeup call for the youth who put all their income on betting and gaming.
He urged Young Kenyans to instead work hard and save more in order to realize their potential.
“I am very happy that the government is going to tax (the sector) at 50 percent. I would have wanted them to put 80 per cent. Because if you are so stupid to go and put your money in somebody else hands and expect them to make you rich, you are crazy,” Kirubi said.
The proposed new tax will affect betting, which is currently taxed at 7.5 per cent, lottery at 15 per cent and gaming taxed at 12 percent.
“Don’t be baited. there is no free money anywhere. If you find free money, know that you are dreaming or you have gone crazy,” he stressed.
Rotich attributed the move to the negative consequences the industry has caused to young Kenyans, though it is not clear if winnings will be taxed.
The move comes even as Gem Member of Parliament Jakoyo Midiwo bill to introduce new and higher taxes on the gaming industry.
Gross revenues from the industry are estimated to be in the region of Sh3 billion and forecasts indicate that the industry will experience steady growth over the next five years.
Despite the steady growth of gambling in Kenya, the industry has faced several challenges such as low-profit margins as a result of high fixed costs, technological challenges, weak regulatory and institutional framework, intense competition, and an unclear tax policy.