Survey: Majority of Kenyans against new betting tax

Tifa Research Director Maggie Ireri speaks at a past function. According to a survey by the body, 60 percent of Kenyans are opposed to the betting law tax. PHOTO | FILE |

What you need to know:

  • Sports stakeholders are planning to form a lobby group to campaign against the new 35 per cent betting law tax.
  • This follows the publishing of a research by Trends and Insights for Africa (Tifa) that showed that 60 percent of Kenyans are opposed to this law which takes effect on January 1.
  • According to the findings, 90 per cent of the respondents were football fans, but 69 per cent of them were not aware of any new legislation that seeks to tax sports gaming companies.

Sports stakeholders are planning to form a lobby group to campaign against the new 35 per cent betting law tax.

This follows the publishing of a research by Trends and Insights for Africa (Tifa) that showed that 60 percent of Kenyans are opposed to this law which takes effect on January 1.

According to the findings, 90 per cent of the respondents were football fans, but 69 per cent of them were not aware of any new legislation that seeks to tax sports gaming companies.

Even those who knew about the new law did not have a clear understanding of the figures involved, thus compelling the Tifa researchers to take them through the details of the law.

Having been taken through, six in 10 of the respondents said that they do not support the legislation, 22 per cent said they “support a lot” while 18 per cent remained neutral.

Asked to offer reasons for their lack of support of the new tax legislation, the sports fans said that it would kill betting companies in Kenya; that other companies should be taxed the same amount and not just gaming companies; that local support on sports will dwindle and that it will lead to unemployment.

Those in support of the new tax legislation believe that it will reduce gambling; it will protect the public from exploitation; and that betting companies have a lot of money and can therefore afford the increased tax.

“There is need to create a lobby group made up of all stakeholders because we are the ones who benefit from this money,” Kenyan Premier League Chief Executive Officer Jack Oguda said.

He added: “It is now important for all stakeholders to come together and speak with one voice against the tax.”

Tifa has, however, admitted an oversight in their questions to the respondents, as they failed to let them know that the revenue collected from the increased tax would be put in a collective pool called the Sports Fund.