Kenya has scrapped a 20% tax on betting stakes and winnings, which led to closure of one of the biggest gambling companies in the country.

The removal of the excise duty could see the return of the once vibrant sports betting industry in the country.

The fiscal measure introduced last year attracted strong opposition from betting companies as taxed both the winnings and the amount staked by the person placing the bet.

This move led to the closure of several companies, including SportPesa which the taxman said owed over $500,000 (£400,000) in tax arrears.

Sportpesa, which has operations in Kenya, Tanzania, South Africa, the UK and Italy successfully appealed against the new tax at a Nairobi-based tax court last November.

The tribunal ruled that the tax should be charged on winnings, and not the stakes placed.