Kenya Slashes Betting Excise Duty from 15% to 5%

The Kenyan Parliament has approved an amendment to the 2025 Finance Bill, reducing the excise duty on sports betting to 5% — just months after it was raised from 12.5% to 15%.

📉 What’s Changed in Tax Policy

💰 New Tax Collection Framework

Under the new rules, the 5% excise duty will no longer be applied when placing a bet, but rather when funding a betting account — specifically when transferring money from a mobile wallet to a betting operator’s platform.

This shift aims to improve oversight and combat tax evasion, especially by foreign and virtual operators who have historically avoided regulatory scrutiny.

📊 Integration with the KRA

The Kenya Revenue Authority (KRA) has integrated its systems with 36 licensed betting firms, enabling real-time transaction monitoring. This move has been pivotal in enhancing transparency and tax compliance.

📌 Additional Tax Obligations for Operators

• 20% — withholding tax on player winnings
• 15% — tax on gross gaming revenue (GGR)

These obligations remain in effect alongside the revised excise tax collection model.

📈 Increased Activity, Declining Winnings

The data points to a surge in betting activity but a simultaneous drop in winnings, likely driven by stricter odds and more conservative payout policies.

⚖️ Controversy and Public Response

Despite rising revenues, the government’s decision to lower the excise tax has sparked criticism, especially amid growing concerns about problem gambling and household financial distress. Advocates for tighter regulation are calling for a ban on influencer marketing and stronger controls over promotional strategies.

Kenya ranks as the third-largest betting market in Sub-Saharan Africa, following South Africa and Uganda. As the industry continues to expand, it is drawing increased scrutiny from both regulators and civil society.

📃 Conclusion

The move to cut excise duty to 5% appears to be an attempt to balance fiscal objectives with regulatory oversight. However, such a concession — amid a booming betting market — raises doubts about the government’s true commitment to curbing gambling proliferation.