The Ksh208 million SportPesa Mega Jackpot winner Cosmas Korir will now be forced to part with Ksh42 million in tax.
This is in accordance with the 20% tax on gambling winnings imposed by the government.
According to the Tax Laws (Amendment) Bill 2018 which was approved by President Uhuru Kenyatta on September 21, gaming operators are required to withhold 20% of players’ winnings on behalf of the taxman.
This followed the scrapping of Kenya's previous 35% tax on betting and gaming services providers in favour of a tax of 15% on the companies and 20% on the winners.
Under the new laws, Korir will have to part with Ksh41.6 million to the taxman out of his lucrative win.
Betting has become a popular money-making venture, especially among the youth making the government target it as part of its tax-raising avenue.
However, the betting trend has raised concerns of addiction and the negative economic impact on the individuals.
Facing a cash crunch, the government introduced a myriad of revenue sourcing procedures for the 2018/2029 Annual Budget.
Top of these measures is the controversial 8% VAT levied on petroleum products that sparked outrage among politicians and leaders.
In the 2018 Finance Act, the government introduced new aspects including the taxation of internet data.
