Kericho Senator Aaron Cheruiyot has denied allegations linking him to the misappropriation of betting taxes in Kenya, following claims by blogger Cyprian Nyakundi.
In an update on Saturday, April 26, Nyakundi alleged that Cheruiyot is at the center of a scheme siphoning billions from Kenya's booming betting industry.
According to the claims, powerful individuals, including Cheruiyot, allegedly bypassed the Kenya Revenue Authority (KRA) by introducing a private system to intercept betting taxes before they reached the government.
However, responding to the allegations, the senator dismissed the accusations as baseless and defamatory.
Cheruiyot insisted he has no involvement, also criticizing the nature of the allegations, suggesting they were part of a deliberate attempt to tarnish his reputation.
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"Stop this, your smear campaign. I do not even know how to bet, let alone have an interest in a betting firm or related business. Neither directly nor by proxy. You ought to be embarrassed of yourself," he said.
Notably, the government has implemented a comprehensive taxation model to regulate the betting industry.
The key taxes imposed on betting activities include a 15% betting tax on revenue generated from betting activities and a 15% turnover tax on all gross earnings of betting firms.
Others are a 20% excise duty on amounts staked by punters and a 20% withholding tax on winnings from betting, lotteries, gaming, and prize competitions.
These taxes are remitted to the Kenya Revenue Authority (KRA) by the 20th day of the month following the month of collection.
To enhance compliance and streamline tax collection, the KRA has integrated betting firms into its tax system, allowing real-time access to transaction data.
According to KRA, tax revenues from betting and gambling companies in the 2024/25 financial year rose by 26.2%, reaching Ksh24.2 billion, up from Ksh9.2 billion the previous year.
Excise duty on betting alone contributed Ksh6.64 billion, surpassing the target of Ksh5.715 billion.
