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Case Brief · caselaw.co.ke
Court of AppealDismissedCivil Appeal No. 471 of 2019· [2021] KECA 847 (KLR)

Pevans East Africa Limited v Betting Control & Licensing Board & 2 others

Court of Appeal
19 March 2021
4,697 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~19 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that a betting licence cannot be renewed without proof of tax payment, dismissing Pevans East Africa's challenge against the regulator.

What this practically means

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Executive summary

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This was a first appeal by Pevans East Africa Limited against the dismissal by Mativo, J (judgment delivered by Makau, J on 30th August 2019) of its constitutional petition challenging the Betting Control and Licensing Board's failure to consider and renew its betting licence for 2019/2020. The appellant condensed 24 grounds into four issues: compliance with legal requirements for renewal; breach of Article 47; the effect of Section 5(3) of the Betting, Lotteries and Gaming Act; and breach of Article 27. A full bench of Nambuye, Okwengu and Sichaule JJA delivered a single unanimous judgment. On the first issue, the Court held that proof of payment of gaming and betting tax was a relevant material consideration and a prerequisite to renewal, drawing on Section 5(2) of the Act and its preamble, and noting that the appellant's pending tax disputes with KRA cast doubt on its compliance status. On Article 47, the Court found that reasons were in fact given in the Board's letter of 1st July 2019 (pending compliance investigations) and that the appellant, whose petition preceded that letter by four days, showed no prejudice. On Section 5(3), nothing turned on the point given that reasons were given. On Article 27, the Court held that selective renewal of licences by a regulator discharging its statutory mandate is not, without evidence, discrimination. The appeal was dismissed with costs. The judgment binds subordinate courts to the propositions that tax compliance is a material prerequisite to betting licence renewal and that unsupported allegations of discrimination by a regulator must fail.

Key legal issues

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01

Whether the appellant complied with the legal requirements for renewal of its licence, particularly proof of tax payment

Holding

Proof of payment of gaming and betting tax is a relevant material consideration and prerequisite prior to grant or renewal of a licence; the appellant's pending tax disputes with KRA cast doubt on its tax compliance status.

Reasoning

Relying on Section 5(2) of the Betting, Lotteries and Gaming Act and the preamble to the Act, the Court held the Board may require such declarations or further information as it deems necessary. The Act does not define what investigations are necessary, but proof of tax payment falls squarely within the Act's purpose of imposing and recovering tax on betting and gaming. The Court associated itself with the trial judge's findings and saw no reason to interfere.

p. 4
02

Whether there was breach of Article 47 of the Constitution (right to fair administrative action and reasons)

Holding

No breach: the appellant was provided with reasons for the refusal by the letter dated 1st July 2019, and the absence of reasons before filing caused no demonstrated prejudice.

Reasoning

The petition was filed on 27th June 2019 and reasons were served on 1st July 2019, four days later. The Court, adopting the trial judge's reasoning, held that the appellant had not demonstrated that the delay prejudiced its right to petition. The appellant had delayed providing required information and was, in the Court's view, the author of its own misfortunes. The letter of 1st July 2019 cited pending investigations into compliance with set licensing conditions as the reason.

p. 4
03

Whether Section 5(3) of the Betting, Lotteries and Gaming Act shielded the Board from its Article 47 obligations

Holding

Nothing turns on the point because reasons were in fact given; the trial judge's reliance on the Act, including the exemptions in section 6, could not be faulted on these facts.

Reasoning

Having found that the Board did provide reasons for the refusal, the Court saw no basis to disturb the judge's finding. The judge had reasoned that where reasons involve intelligence reports and security investigations, such information falls within the permitted exceptions under section 6 of the Act, and the question of sufficiency depends on the nature of the exemption claimed.

p. 4
04

Whether the respondents' actions violated Article 27 by discriminating against the appellant

Holding

No discrimination was proved; differential renewal of licences across companies reflects the regulator's statutory mandate and the allegation remained mere allegation without evidence.

Reasoning

The Court adopted the definition of discrimination in Peter K. Waweru v Republic and the distinction between discrimination and unfair discrimination in Nyarangi v Attorney General, noting that not all distinctions are unlawful; distinctions are legitimate if they pursue a legitimate aim and are reasonable. The mere confirmation that some licences were renewed and others not, without more, did not amount to discrimination, and no evidence of unfair differential treatment was tendered.

p. 5

Legal principles established

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  • Proof of payment of gaming and betting tax is a relevant material consideration and a prerequisite to the grant or renewal of a betting licence under the Betting, Lotteries and Gaming Act, even where the Act does not explicitly define what investigations or information the Board may require.
  • A regulator discharging its statutory mandate by renewing some licences and refusing others does not, by that fact alone, discriminate; a party alleging discrimination must tender evidence of unfair or differential treatment.

Court orders

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  1. 1.The appeal is dismissed
  2. 2.The appellant shall pay the costs of the appeal
On appeal from
High Court of Kenya at Nairobi
Nairobi Petition No. 252 of 2019
Jurisdiction invoked
First appeal to the Court of Appeal under the Court of Appeal's appellate jurisdiction (the judgment is expressly a first appeal from the High Court; no specific constitutional/statutory provision is quoted in the judgment)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Pevans East Africa Limited v Betting Control & Licensing Board & 2 others", Case Analysis (2021). Civil Appeal No. 471 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2021/847/eng@2021-03-19

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.