The bill, signed into law by Kenyatta on 29 June, originally envisaged a return of the controversial 20% excise tax on betting rates.

This tax was increased from 10% in 2019, leading Sportpesa and Betin operators to exit the market amid another dispute over another 20% stake tax.

However, in its amendments to the Finance Act 2020, the country's Finance Committee proposed removing the tax altogether, arguing that by forcing operators out of the market, the tax increase effectively meant the Treasury was collecting less tax revenue.

The change was eventually approved by Parliament and signed by Kenyatta, who had previously expressed strong opposition to the industry. However, the Ministry of Finance took the successful Danish operator Spillesider Uden Om Rofus as an example and promised to reintroduce the tax in the near future.

It eventually reintroduced a 20% share tax in this year's Finance Bill when it was first tabled in Parliament in May.

However, the Finance Committee again rejected the tax rate. This time it was proposed to reduce the rate to 7.5%, but to allow the tax on lotteries, not just stakes.

The committee gathered evidence on the bill from a number of stakeholders, including Sportpesa, who argued that using turnover as the basis for the excise tax was contrary to the Excise Duty Act. The operator pointed out that the law states that the excise value of services should be "the amount, commission or fee paid for services or market value".

The finance committee said reducing the tax rate would help retain players on licensed sites.

"The committee noted that the proposed rate of excise duty on betting is too high and may ultimately fail to achieve the intended revenue as most players will choose international platforms for their betting activities," it said.

The proposal passed its third reading in parliament and was passed last week before the country's president signed the bill into law.

Sportpesa returned to the Kenyan market under a new licence owned by Milestone Games following the abolition of the tax last year. However, this in itself caused controversy as the regulator, the Betting Control and Licensing Board (BCLB), argued that Milestone had no rights to use the Sportpesa brand.

Ultimately, the High Court ruling allowed Sportpesa to accept bets again.