for early access to the latest igaming videos!
and get the latest igaming news first!
It’s good news for Kenyan sports bettors as the National Parliament has approved a significant cut in excise duty on bets, reducing it from 15% to just 5%. This change, part of the Finance Bill 2025, offers relief to millions of gamblers who previously faced a hefty tax of Sh15 for every Sh100 wagered.
The recent amendments passed smoothly through the National Assembly and are now awaiting the president’s approval. This new tax framework not only applies to betting but also extends to prize competitions and lotteries, potentially leading to bigger winnings for punters and encouraging more people to place bets.
In addition to lowering the tax rate, lawmakers have shifted the timing of when excise duty is collected. Instead of taxing bets at the point of wagering, the new system requires that the duty be paid when funds are transferred from mobile money wallets to betting accounts.
This adjustment aims to enhance tax enforcement, particularly against foreign or virtual operators that have been challenging to monitor under the old rules. “When you are placing a bet, the current taxation regime is that when you have money in your mobile money account and then you transfer that money to the wallet of a betting company, the time of charging excise duty is when you place a bet,” stated MP Kimani Kuria, chairman of the Finance Committee.
“We are changing to make it for excise duty to be payable when you transfer money from your mobile wallet to the betting company wallet. There are so many entities operating virtually, some outside the country from which we are not able to get this excise duty from them. This now means that every time a Kenyan transfers money from their mobile wallet to the wallet of the betting company, then that’s the time the excise duty is paid.”
Operators Now Required to Withhold Winnings at a Rate of 20%
In a move aimed at increasing revenue for the Kenya Revenue Authority (KRA), betting operators are now mandated to withhold 20% of winnings and pay 15% of gross gaming turnover less the amount paid out to punters as winnings. This change is part of a broader strategy outlined in this year’s Finance Bill, which seeks to tighten tax collection without introducing new taxes.
Recent data reveals that the total stakes in the betting sector rose by 17.04%, reaching Sh75.18 billion, indicating a surge in gambling activity. However, this rise contrasts with a 15% decline in withheld winnings, which fell to Sh4.81 billion. This drop suggests that while more money is being wagered, lower payouts and tighter odds are affecting the amount players actually receive.
To enhance compliance and prevent revenue losses, KRA has integrated its systems with 36 betting companies, allowing for real-time monitoring of transactions. This digital approach marks a significant shift in how revenue is managed in an industry that has faced issues with transparency.
With the excise duty on betting evolving over recent years, from 7.5% in 2021 to 15% by late 2024, the latest measures reflect the government’s intent to capitalize on the growing betting market while ensuring that tax collection is more effective.
BCLB Warns About Rising Gambling Ads Despite Ban
The Betting Control and Licensing Board (BCLB) has raised alarms about the increasing rise of gambling advertisements, despite recent restrictions. Chairperson Jane Mwikali highlighted a troubling trend where some betting companies present gambling as a viable investment and a quick way to accumulate wealth.
This misleading portrayal can have serious socioeconomic effects. “The erroneous depiction occasions adverse socioeconomic consequences, with devastating effects on individuals, families, and the broader community,” she stated, emphasizing the need for greater scrutiny.
Despite efforts, licensed betting firms in Kenya have continued to surge, increasing from 118 in 2021 to 200 by June 2024. This rapid growth reflects the country’s position as the most active betting market in Sub-Saharan Africa, trailing only South Africa and Uganda, according to Geopoll’s 2025 survey. However, the expansion has not come without consequences, as the industry faces intense criticism for its role in fostering addiction and ruining lives.
As the BCLB reviews advertising practices and bans influencer marketing, the call for stricter regulations grows louder. Meanwhile, the government’s decision to reduce excise duties on betting raised questions about its commitment to effective regulation. The total amount staked in the betting sector rose by 17.04%, reaching KSh 75.18 billion in just nine months, further confirming the urgent need for responsible oversight in the fast-growing market.
Source: iGamingAfrika
