Kenya Cuts Gaming Excise Tax to 5 Percent

New Tax Structure Affects Multiple Gaming Categories

The Kenya Revenue Authority restructured excise duty calculations across betting, gaming, and lottery operations effective July 1, 2025. Betting operators excluding horse racing now pay 5 percent excise duty on customer wallet deposits, rather than the previous 15 percent levy on staked amounts. Gaming establishments face similar adjustments, with duties calculated on deposit values instead of wagered sums.

Prize competition operators will remit 5 percent on participation fees, representing a significant reduction from the former 15 percent rate. Lottery operators, excluding charitable organizations, now pay 5 percent excise duty on ticket purchase values. These changes form part of broader tax reforms introduced through the Finance Act 2025, fundamentally altering revenue calculations for gaming businesses.

Operators Face Accelerated Payment Requirements

Gaming and betting companies must submit collected excise duties within 24 hours of daily transaction closure under the revised framework. Prize competitions and lottery operators receive extended deadlines, with tax remittance required by the 20th day of the following month. The revenue authority emphasized compliance importance in its public guidance.

“Manufacturers and/or suppliers of the above excisable goods and services are required to charge the new excise duty rates on the excisable goods and services and remit the tax collected to the Commissioner as follows within twenty-four hours from the closure of transactions of the day in the case of betting and gaming; and on or before 20th of the month following the month in which the tax was collected for all other excisable goods and services listed above,” the authority stated. The accelerated payment schedule represents a significant operational adjustment for gaming operators managing cash flow and administrative processes.