Betsafe is the latest betting company to be pushed out of the Kenyan market with increased taxation. According to its CEO, Victor Sudi, the company shut down its Kenyan operations on May 14 rendering all employees jobless.
“It’s true that Betsafe Kenya will cease its operations in the country effective May 14, 2024,” Mr Sudi said. He added that the punters with outstanding balances will be refunded in 7 days.
Betsafe has been operating in Kenya since 2020 under Bet High Kenya which is a subsidiary of Betsson.
Betsafe is not the only firm to exit the market as Betin also exited terming the tax environment to be excessive and not favourable to operate in.
Taxation in Kenya
At the moment, betting firms are taxed 15% on the gross gambling revenue. They are also required to pay the 30% corporate tax on profits. Most see this as being excessive as it significantly eats up their earnings.
The firms are also expected to pay 16% income tax in addition to the annual licensing fees they are required to pay.
Things are not only tough for the betting companies as Kenya’s Finance Bill, 2024 seeks to raise tax on betting stakes for punters to 20%. If passed, punters will be forced to take home less money than they did before.
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