Court upholds additional betting taxes, rejects double-taxation claim
Justice Mbungi ruled that the excise duty on stakes is a consumption tax under the Excise Duty Act, while the withholding tax on winnings is an income tax under the Income Tax Act — meaning they apply to different taxable events. - Kenya breaking news | Kenya news today | Capit..
✨ Key Highlights
The High Court in Kakamega has upheld the legality of additional taxes on betting stakes and winnings in Kenya, dismissing a petition that argued these levies constituted double taxation and violated the Constitution. The ruling affirms the government's authority to tax betting activities for revenue generation and industry regulation.
- A 12.5 per cent excise duty on amounts wagered and a 20 per cent withholding tax on winnings were deemed distinct by Justice Stephen Mbungi, applying to different taxable events.
- The petition, filed by Edward Okwama, named Milestone Gaming Limited, Standard Global East Africa Limited, the Kenya Revenue Authority (KRA), and the National Assembly among respondents.
- The court ruled that betting is a voluntary activity, and the taxes were lawfully enacted with public participation, serving dual purposes of revenue generation and discouraging gambling. Punters and industry players have 30 days to appeal the decision.
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High Court Upholds Betting Taxes and Allows Presidential Advisors in Cabinet Meetings - August 2025
The High Court in Kakamega has upheld the legality of additional taxes on betting stakes and winnings, dismissing a petition that claimed a 12.5% excise duty on amounts staked constituted double taxation and violated the Constitution. The ruling affirms the government's authority to tax betting activities. In a separate case, a Kenyan High Court ruled that presidential advisers, such as David Ndii, are permitted to attend Cabinet meetings. Justice Lawrence Mugambi dismissed a petition seeking to block their presence, stating that President William Ruto has the discretion to invite experts for advisory purposes and no laws prevent this.
