Editor's Review

Justice Anthony Mrima ruled that there was no public participation before the excise duty was introduced in the Finance act 2021.

The High Court has quashed the 7.5 percent excise duty tax imposed on gamblers’ money set aside for gambling.

Justice Anthony Mrima ruled that there was no public participation before the excise duty was introduced in the Finance act 2021.

 “Going by the gravity of the submissions made by the participants during the public meetings on betting, there is no doubt that the public ought to have been accorded an opportunity to also express themselves on the issues of gaming and lottery. That opportunity was, however, not accorded,” said the judge.

The now-revoked act required betting companies to withhold and forward Sh75 out of every Sh1,000 wagered, regardless of whether the punter won or lost.

File image of a Casino

The Association of Gaming Operators of Kenya (AGOK) had claimed that the law was unconstitutional and that gaming and lottery should not excise because no good or service is provided.

They claimed that the process leading to the introduction of the tax fell short of constitutional provisions.

The Kenya Revenue Authority (KRA) on the other hand argued that there was adequate public participation before the drafting of the Finance Bill 2021.

The court also nullified the law that introduced a 7.5 percent excise duty on lottery tickets.