Pambazuka National Lottery jackpot prize winner Millicent Nyamancha (right) receives a dummy cheque of Sh20,294,296 million from Pambazuka National Lottery Head of Marketing Christine Mwaura at the Stanley Hotel in Nairobi on November 8, 2017. PHOTO | SALATON NJAUPambazuka National Lottery jackpot prize winner Millicent Nyamancha (right) receives a dummy cheque of Sh20,294,296 million from Pambazuka National Lottery Head of Marketing Christine Mwaura at the Stanley Hotel in Nairobi on November 8, 2017. PHOTO | SALATON NJAU
By NAIROBI NEWS REPORTER

Pambazuka National Lottery has announced closure of its operations in Kenya in the wake of a new tax levy coming into force.

In a public announcement on Sunday, Pambazuka National Lottery said it has suspended business operations in Kenya due to the current taxation regime.

The lottery also confirmed that after the live draw of Sunday, January 7, 2018 all its operation will cease until a sustainable regulatory framework is put in place for the lottery industry.

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“Prior to January 2018, operations have been based on 55% pay-out and the imposition of 25% tax devoted to charity as per regulations. The effect of the 35% tax on all ticket sales is that the total cost of operation rises to 115%. This is before the deduction of all operational costs. Operating any lottery under this framework is not possible and therefore business operations are forced to close,” the public announcement read in part.

Pambazuka National Lottery, however, assured its customers that all prize claims after the last draw will be paid out to the winners directly or from the company offices until April 7, 2018.

The lottery’s suspension of its operations follows betting firm SportPesa’s cancellation of all sports sponsorship in Kenya last week.