Sectors such as gaming and betting, insurance and motorcycle imports are set to be some of the most hit if the recommendations of the 2024/2025 budget estimates are passed.

During the presentation of the 2024/2025 budget estimates in parliament on Thursday, the Treasury Cabinet Secretary, Njuguna Ndung’u stated that the excise duty on betting and gaming sites will be increased to 20 per cent.

He further stated that the move is aimed at curbing betting among school-going children and discouraging more Kenyans from being addicted to the sites.

“Participation in betting, gaming, and lotteries continues to affect the social economic fabric of our society given the addictive nature. To further discourage this behaviour, I propose to increase the excise duty tax rate to 20 per cent,’ stated Njuguna Ndung’u.

In the 2023/2024 financial year, the excise duty has been charged to betting sites at a rate of 12.5 per cent.

Another sector that will be set to lose out is the import of fully assembled motorbikes which will now attract a 10 per cent excise duty on the customs cost of the import.

Njuguna Ndung’u stated that this measure was expected to boost the growth of the Kenyan motorcycle assemblies.

Additionally, the CS noted that the government will now collect revenue on alcoholic products such as wines and spirits based on the percentage volume of alcoholic content within the drinks.

According to the proposed tax structure wines and beers will attract Ksh 22.50 per centiliter and Ksh16 for spirits.

The government has also proposed an introduction of the motor vehicle tax which will be charged at 2.5 per cent of the vehicle’s value.

Treasury further noted that this tax will be charged with a minimum of Ksh 5,000, however, no cap was placed on the tax.

Within the Finance bill, the cap on the motor vehicle tax had been placed at Ksh 100,000.