Betting firm sues CS Rotich over punitive taxes

A betting firm has moved to court seeking an order to quash Cabinet Secretary Henry Rotich’s decision to increase taxes levied on the betting, lotteries, and gaming industry to 50 per cent across the board.

Bradley Limited argues that CS Rotich in taking the administrative action under the budget process with respect to the betting, lotteries, and gaming industry taxation measures was biased and violated the applicant’s legitimate expectations.

The betting company further claims that the CS through his actions acted ultra vires the express provisions of Section 15(2)(f) of the constitution.

Bradley Limited, in its petition, argued that the constitutional and statutory primacy in the taxation of the betting, lotteries, and gaming industry is vested on the Betting Control and Licensing Board and the CS in the state department.

In a case filed this morning (Monday), the petitioner named CS Henry Rotich, Interior CS  Joseph Nkaissery, and the Betting and Licensing Board as respondents.

The 50 per cent increase was announced on 30th of last month before the National Assembly.

The applicants said CS Rotich in his budget policy statement dated November 2016 for the fiscal year 2017/2018 did not mention an intention to enhance the taxation measures against the betting, lotteries, and gaming industry.

“The respondents and particularly CS Henry Rotich have not directly engaged in the Industry with respect to the proposals to enhance the taxation measures as proposed in the budget statement delivered on the 30^th March,” reads the petition.

Bradley Limited states that the CS acted outside his jurisdiction by increasing taxation rates for the betting, lottery, and Gaming industry.