The Kenya Revenue Authority (KRA) has revealed details of the intricate process that will go into the vetting of betting and gaming companies ahead of the 2025/2026 financial year, as the crackdown against rogue companies intensifies.
In a public notice, the taxman reminded all licensed betting firms that their current operating licences issued by the Betting Control and Licensing Board (BCLB) under the Betting, Lotteries and Gaming Act (Cap. 131) would expire on June 30, 2025.
With this in mind, these firms will have to undergo a mandatory clearance by KRA, as required under Section 9 of the Act.
For betting firms to confirm their compliance status, there are certain requirements that need to be met. According to KRA, the process is an in-depth validation exercise grounded in the Tax Procedures Act.
Among the key conditions is the submission of a current CR12, which essentially provides a record of the betting firms' managerial hierarchy, from the directors to the shareholding structure.
Since the CR12 needs to be the latest one, betting firms have been urged to update their iTax profiles to reflect the comprehensive list of all their directors.
Being 'tax season', the taxman will also check that all applicable tax returns have been filed for both the company and its directors. Betting firms with outstanding tax liabilities run the risk of being denied a fresh licence to operate. Notably, this vetting to check that all applicable tax returns have been filed extends beyond the corporate level to include the individual obligations of company directors.
For the betting companies undergoing an audit, KRA will require all requested documents and unrestricted access to company systems to ensure transparency. This also gives the taxman an easier time since tax practices are able to be accessed in real time.
Valid Tax Compliance Certificates (TCCs) for both the betting company and its directors will be required to prove that they are in good standing with the authority.
The tax authority also requires betting firms to integrate their systems with KRA platforms to support daily remittances and automatic transmission of data. Paybill numbers from these firms will also have to be integrated and officially approved.
This fresh update is part of a broader strategy to curb the menace of unregulated betting platforms, and it comes just days after the Betting Control and Licensing Board(BCLB) suspended all gambling advertisements across all media platforms in the country
Meanwhile, the Kenya Film Classification Board (KFCB) also issued new directives requiring firms to acquire licenses to be able to engage in audiovisual gaming advertisements.
