Kenya Lowers Betting Tax to 5%
Kenya’s National Assembly has approved a major tax cut on betting, lotteries, and prize competitions. The excise duty drops from 15% to 5%. The change lowers costs for punters and expands tax collection to offshore platforms. But critics warn it may worsen gambling harm and reflect political favoritism.
Lower Tax, Wider Reach
The Finance Bill 2025 includes a reduced excise tax on stakes. Gamblers now pay KSh 5 instead of KSh 15 for every KSh 100 wagered. The tax will be collected earlier—when funds move from mobile wallets to betting accounts. This change allows authorities to capture offshore operators previously outside tax enforcement.
Punters benefit directly. A KSh 1,000 bet now incurs KSh 50 in tax, down from KSh 150. The 20% withholding tax on winnings remains unchanged. Government figures show strong revenue growth. Excise income rose 24% to KSh 9.97 billion in nine months. Kenyans wagered an average of KSh 247 million daily, even under the higher rate.
Social Risks and Regulatory Concerns
Regulators worry the lower tax will drive more gambling, especially among youth. Kenya already leads Africa in youth gambling participation. Easy access to mobile money, low data costs, and high unemployment contribute to this trend. Critics say the reduced tax removes a key disincentive to excessive play.
Some lawmakers have financial links to betting companies, according to past regulatory disclosures. This has raised concerns about conflict of interest. Observers question whether the new tax benefits public interest or private stakeholders. The move could undermine previous efforts to regulate the sector more strictly.
Controversial Timing and Priorities
The cut comes while other taxes remain untouched. Levies on food, airtime, and M-Pesa fees still apply. Betting, however, gets a rapid tax break. Treasury data shows tax compliance was strong even before the cut. This weakens arguments that high taxes hurt revenue collection.
The decision has sparked public debate. Critics say the move reflects deeper flaws in Kenya’s fiscal and political systems. They question whether lawmakers act in citizens’ interest or cater to industry pressure. The reform may serve business at the expense of vulnerable communities.
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