Kenya takes action against illegal gambling providers

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Lennart folder 22. May 2019

Gambling in Kenya is one of the particularly profitable economic industries. In the country on the African east coast, international gambling providers are only put in the way of a few obstacles, differently than is the case in many European countries. But apparently the loose legislation was used. Because many companies have not fulfilled their tax liability. The Kenyan cabinet secretary Fred Matiang’i now wants to collect the tax debts – or with the company withdraw the happiness.

Like the gospel singer Murigi Kamau Wanjohi, other Kenyan celebrities could also take significant financial damage due to an advertising ban for gambling providers. © Twitter

Missing tax revenue in billions

If it only affected a gambling provider or it was rather smaller tax debts, the would Kenyan politics certainly press an eye or not threaten with the very big political countermeasures. in this case, the situation looks very different. according to current information from the kenyan ministry of the interior, national and international gambling companies are supposed to Around 26 billion Kenya shilling of tax payments be. for info: the equivalent of this is about 230 million $ , so anything but a small amount for a country whose gdp is around $ 75 billion. it is not surprising that the Kenyan Cabinet Secretary of the Ministry of the Interior now wants to take measures to collect the lack of tax payments – this is always possible, because in kenya gambling providers enjoy numerous privileges very differently than in many other countries in the world and are hardly regulated. basically, private gambling is after Kenyan law also permitted private providers, provided the provider has been issued by a state issued by the state Gambling license has, but which is relatively easy to preserve. In return, of course, taxes have to be paid to the state. In many cases, however, this does not seem to have happened. Good to know: In Kenya, the gaming business is a very important economic factor. According to the Kenyan Ministry of the Interior, the industry is said to have grown rapidly within the past five years. During this period, the financial value of the industry in Kenya is said to have increased from two to 200 billion Kenya shilling. This corresponds to almost 1.77 billion $ .

Gambling providers flee in court proceedings

To put pressure on the numerous companies, wants Fred Matiang’i the providers who debt the state will withdraw the happiness of happiness as soon as possible. without this, another activity on the kenyan gambling market for the affected company would no longer be possible at least in a legal way. in view of the economic importance of gaming companies, however, such measures are actually not desired, of course one does not want to be completely cheated on the companies, but also do not do without the important tax payments. fred matiang’i currently has the company Until July 1st time given. until then, all gambling providers who work in kenya must present their tax receipts to the tax office. anyone who does not comply with this requirement must immediately expect withdrawal of happiness. this in turn could also be problematic for the companies concerned, because kenya is also a lucrative market for the providers. ultimately are 76 percent of all Kenyans regularly actively on the gaming market. the kenyan gambling market is one of the largest in the world at least in relation. the big problem is currently located elsewhere. fred matiang’i criticizes that many gambling companies In complex legal proceedings flee. Although these have little prospect of success, such processes can take years – a long time for Kenya to do without taxes in the millions.

Measures against gambling industry could harm many people

Nevertheless, political measures and restrictions towards gambling providers active in Kenya are to be treated with caution. Sereafter, people can also be indirectly affected, as is currently the case using the example of the Gospelsängers Murigi Kamau Wanjohi becomes clear. this singer, which is very famous in kenya, promotes domestic gambling providers and thus generates a large part of his livelihood. however, this could change suddenly in the future, since the kenyan government also plays with the thought Advertising for gaming offers to enact. on the one hand, this should naturally be made taxable companies that have not fulfilled their payment obligations, on the other hand, kenya wants to through this measure but also that Problem of gambling addiction get under control. the industry is flourishing due to the fundamentally not regulated market, but hardly any measures for player protection are also implemented. many kenyans even finance their gambling through loans. in principle, the law on advertising ban for gambling should be issued at the end of may. the lawyer of wanjohi and also the legal representatives of other affected celebrities from kenya had appealed against the law, whereupon the decree was lifted for the time being. currently it is being checked To what extent such a law would actually endanger the financial security of affected prominent Kenyans. A decision in this regard is still pending.