The government has moved to address an unhealthy betting obsession that has had serious consequences for Kenyans, especially the youth.

Betting Control and Licencing Board (BCLB) has proposed a gambling tax and a gambling levy, whose proceeds will be used for rehabilitation purposes and to create awareness of the adverse effects of gambling addiction.

According to the draft Gambling Control Bill, 2023, the two taxes will be imposed on betting companies.

“There shall be a monthly levy to be known as gambling levy which shall be paid by a licencee to the Gambling Regulatory Authority,” the Bill reads in part.

The levy collected shall be paid into an account operated by the Authority on or before the 20th day of the following month.

It further says there shall be a tax to be known as gambling tax chargeable at the rate of 15 per cent of the gross gambling revenue.

The Bill says the Cabinet Secretary responsible for matters relating to gambling shall in consultation with the Authority, prescribe the amount of the gambling levy payable.

“… provided that the amount prescribed shall not exceed one per cent of the monthly gross gambling revenue of a licensee,” it states.

The Bill says the monies paid under gambling tax shall be used by the Authority for the purposes of research on social determinants of mental health and the population impact of gambling.

It adds that the monies will also be used to create awareness to the general public and during advertising on the addictive potential of gambling and its association with high rates of mental ill health in the population.

It further states that the funds will be used for the establishment of treatment and rehabilitation programmes to support the management of addictive disorders in public health facilities and the eradication of illegal gambling.

The gambling tax shall be paid to the Collector on or before the 20th day of the following month.

“The Collector shall pay all the proceeds of tax paid into the Sports, Art and Social Development Fund established under the Public Finance Management Act, 2012,” the Bill says.

According to the Bill, “Collector” means the Commissioner-General appointed under section 11 of the Kenya Revenue Authority Act, 1995.

While people bet for different reasons, most gamblers in Kenya bet out of desperation to make money.

Gambling addiction has become a topic of discussion in Kenya, with the country having one of the highest gambling rates in Africa.

Gambling numbers in Kenya vary from research to research, but a GeoPoll study in 2021 showed that about 84 per cent of Kenyan youths have been involved in gambling, with a third of that percentage betting on a daily basis.

Safaricom revealed that Kenyans spent Sh169.1 billion on bets placed through MPesa during the 12-month period leading up to March 2022.