The National Assembly Committee on Sports, Culture and Tourism rejected the Interior Ministry proposal to compel betting firms to concede at least 50 percent of their shareholding to Kenyans.
The Interior ministry had sought to change the Gaming Bill to ensure that the Betting Licensing and Control Board (BCLB) only grants or renews operating licences for foreign betting firms where Kenyans own at least 50 percent of the shares.
“The board may either grant, renew or vary a license provided that… in case of a foreign company, fifty percent of its shares is owned by Kenyans,” the Interior ministry said in submissions to the parliamentary committee.
Nonetheless, the ministry of Interior did not disclose the motive behind the push on the ownership patterns that came in the middle of fear of capital flights where large betting firms, huge percent owned by foreigners move billions of shillings made in Kenya to offshore accounts.
The parliament argued that the formulation of licensing requirements in the betting industry remains the role of BCLB, the regulator of the betting industry.
A majority of the betting firms in Kenya are owned by foreigners with sources naming some of their nationalities as Bulgaria, Italy, Russia and Poland.
However, directors from Betin and Betwa were deported last year following a crackdown over non-payment of taxes.
By Joy Kyalo
