BETWAY Kenya Faces Dissolution: The Latest Casualty In Kenya’s Betting Industry Tax Battles

In what appears to be another significant blow to Kenya’s once-thriving betting industry, online gambling platform Betway has initiated voluntary liquidation proceedings amid an escalating Sh5.2 billion tax dispute with the Kenya Revenue Authority (KRA).

BlueJay Limited, the company operating the Betway brand in Kenya, filed for dissolution through law firm Anjarwalla & Khanna Advocates on September 30, 2024. The petition is scheduled for mention before the High Court’s Commercial and Tax Division on May 5, 2025, according to court filings reviewed by this reporter.

“This decision marks the potential end of Betway’s decade-long presence in the Kenyan market, where it had established itself as the country’s third-largest bookmaker,” said a source familiar with the proceedings.

Tax Dispute Details

The KRA’s tax demand against Betway spans multiple categories, including:

– Sh4.13 billion in withholding tax on winnings
– Sh16.37 million in excise duty
– Sh24.46 million in betting and gaming tax

The tax appeals tribunal had previously ruled against Betway, granting KRA permission to collect these outstanding amounts. This ruling appears to have contributed significantly to the company’s decision to exit the market.

Signs of Trouble

Warning signs of Betway’s difficulties emerged nearly two years ago when, on May 16, 2023, the company ceased accepting new customer registrations and deposits.

At that time, the betting firm cited “challenging macroeconomic conditions” as the reason for these restrictions, allowing existing customers only to withdraw their balances.

Industry analyst Jane Muriithi notes, “Voluntary liquidation is typically a last resort for companies that have become insolvent and cannot meet their financial obligations. In Betway’s case, the substantial tax liability likely made continued operations unsustainable.”

Ownership Structure

Corporate registry documents reveal that BlueJay Limited is 70% owned by Rosehall Global Limited, a company registered in the British Virgin Islands—a jurisdiction known for its favorable tax policies, including zero income tax, capital gains tax, and corporate withholding tax on payments to non-residents.

Sources indicate that South African businessman Merrick Wolman Zane, a director of Super Group Limited, holds beneficial ownership in BlueJay.

Super Group Limited operates both the Betway and Spin gaming segments globally.

The ultimate controlling interest in Betway has been traced to Martin Paul Moshal, described as a “reclusive online gambling mogul” who only acknowledged his ownership after British journalists connected him to offshore trusts controlling the betting empire.

Pattern of Betting Industry Exits

Betway’s pending departure continues a concerning trend of betting companies exiting the Kenyan market over tax disputes.

Since 2019, when former President Uhuru Kenyatta’s administration intensified regulatory scrutiny of the gambling sector, several major players have withdrawn:

– SportPesa initially exited in September 2019 over tax disagreements (though the brand later returned under new management)
– Betin closed Kenyan operations in September 2019, also citing tax issues

According to data from Business Restructuring Services (BRS), 24 businesses across various sectors showed distress signals in just the first three months of 2025, suggesting broader economic challenges beyond the betting industry.

“Kenya’s betting industry has been particularly vulnerable to regulatory shifts and tax enforcement actions,” explains economist Michael Odhiambo.

“While the government has legitimate concerns about gambling’s social impact and appropriate taxation, the exodus of major operators raises questions about finding the right balance for sustainable regulation.”

For Kenyan betting enthusiasts who frequented Betway’s platform, the company’s exit represents another reduction in legitimate gambling options, potentially driving some toward unregulated alternatives.

As the liquidation proceedings move forward, creditors and other interested parties can appear at the May 5th hearing.

If granted, the liquidation will formally end Betway’s operations in Kenya, adding another chapter to the ongoing evolution of the country’s gambling industry.