Kenya Betting Taxes Exceed Targets by 117 Percent
Kenya’s gambling sector delivered exceptional tax performance in 2024/2025, with excise duties reaching Ksh13.233 billion ($99 million) against a target of Ksh11.288 billion ($84 million). The 117.2 percent achievement rate positions betting among the country’s top-performing revenue sectors during a period of broader economic slowdown.
Digital Integration Drives Tax Compliance
The Kenya Revenue Authority implemented a taxation-at-source system that directly integrates betting platforms with government monitoring infrastructure. Real-time transaction tracking has enhanced compliance rates while improving revenue collection efficiency. Rispah Simiyu, Commissioner for Large and Medium Taxpayers, stated that “the performance is attributed to KRA’s Taxation at Source initiatives, specifically, integration of betting firms’ systems to KRA’s systems, enabling real-time monitoring of transactions.”
Betting tax revenue totaled Ksh5.70 billion ($43 million), exceeding projections by 103.7 percent. This represents 22 percent year-on-year growth compared to the previous financial period. The combined excise and betting tax collections demonstrate the sector’s resilience amid Kenya’s GDP growth decline from 5.7 percent in 2023 to 4.7 percent in 2024.
Policy Changes Support Sector Growth
Kenya reduced excise duty rates from 15 percent to 5 percent in July 2025, shifting taxation from individual wagers to player deposits. The policy adjustment aims to balance revenue generation with industry sustainability. Total KRA collections reached Ksh2.571 trillion ($19.3 billion) for the financial year, reflecting 6.8 percent growth.
The betting sector’s strong performance helped offset revenue shortfalls in other economic areas during challenging conditions. Digital oversight systems now provide transparency that supports both regulatory compliance and industry development. Kenya’s approach demonstrates how technology-driven tax administration can maximize revenue from emerging sectors while maintaining growth momentum.
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