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Sunday, May 11, 2025

KRA Sets Tough New Rules for Betting Firms Ahead of June License Deadline

Betting and gaming companies in Kenya now face stricter compliance demands before they can renew their operating licenses, as the Kenya Revenue Authority (KRA) rolls out a fresh set of tax regulations targeting the sector.

In a public notice published in MyGov on Tuesday, May 6, 2025, KRA announced that all licenses issued by the Betting Control and Licensing Board (BCLB) for the 2024/25 financial year will officially expire on June 30, 2025.

To continue operating beyond that date, betting firms must apply for license renewal and fully meet the new compliance guidelines set by KRA.

“Clearance by KRA is a mandatory requirement for renewal of the licenses by the BCLB. In this regard, all betting and gaming operators are encouraged to update their tax matters with KRA to avoid any inconveniences,” the authority warned.

Among the critical documents firms must submit is the CR12 form, an official record issued by the Registrar of Companies. This document lists current directors, shareholders, and their shareholdings—information KRA uses to verify corporate ownership and management structures.

In addition, companies must update their iTax profiles to align with their CR12 records. That includes providing current director details, updated physical addresses, and accurate contact information.

But that’s just the beginning.

KRA Demands Full Tax Compliance

Firms must prove they have filed all required tax returns for their obligations. More importantly, every director of the company must also be individually tax-compliant—a requirement KRA says is non-negotiable.

Operators will only be cleared to renew their licenses once they’ve settled any outstanding tax liabilities—both at the corporate and director levels. They must also present Valid Tax Compliance Certificates (TCCs) for both the company and its leadership team.

KRA also listed several other mandatory requirements:

  • Full cooperation during tax audits and compliance checks
  • Provision of all requested documentation during ongoing reviews
  • Unrestricted system access for audit purposes
  • Integration with KRA’s digital platforms for daily tax remittances and real-time data sharing
  • Use of integrated and approved paybill numbers for transparency in revenue collection

These new requirements are part of a broader government strategy to boost tax transparency and regulatory compliance in Kenya’s lucrative betting industry, just weeks ahead of the license expiry deadline.

The move comes as the government cracks down on illegally operating betting firms.

Recently, BCLB flagged 58 betting websites, accusing them of operating without valid licenses within Kenya’s online domain. The board ordered their immediate shutdown, claiming the sites lured users with promises of winnings but refused to pay out, leading to widespread complaints of financial exploitation.

As authorities tighten the noose on rogue operators, legitimate firms are under pressure to align with KRA’s new compliance measures or risk being shut out of business by mid-year.

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