Betting firm sues to challenge Henry Rotich's new 50 percent tax bracket

During his Budget speech on March 30, Rotich said the hiked taxes were as a consideration that the betting world had grown rapidly

NAIROBI: A betting firm has moved to court to challenge the proposal by Treasury Cabinet Secretary Henry Rotich to slap 50 per cent tax on the industry.

Bradley Limited, which runs Pambazuka National Lottery, moved to court Monday claiming Mr Rotich overstepped his mandate by seeking to raise taxes from the current 7.5 per cent of gross profits.

Review taxes

According to the court papers filed by lawyer Muturi Mwangi, the powers to review taxes in the betting industry is only given to the Betting Control and Licensing Board and not Treasury.

“The first respondent (Rotich) acted without jurisdiction and was not authorised to take the administrative decision and the budget proposal in the budget statement with respect to increase taxation rates for the betting, lotteries and gaming industry,” the lawyer said in the case where Attorney General Githu Muigai, Betting Control and Licensing Board, and Interior Cabinet Secretary Joseph Nkaissery are respondents.

During his Budget speech on March 30, Rotich said the hiked taxes were as a consideration that the betting world had grown rapidly, and at that it was hurting the young and vulnerable since it was not regulated.