Kenya Reports 26 Percent Rise in Gambling Tax Revenue
The Kenya Revenue Authority (KRA) reported a significant increase in tax revenue from the betting and gambling sector, collecting Sh24.2 billion in the fiscal year ending June 2024. This marks a 26.2 percent rise compared to Sh19.2 billion gathered in the previous year.
Betting Sector Strengthens as Integration Improves
KRA attributed the growth in gambling tax revenue to enhanced system integration with licensed betting operators. In recent years, the regulator has worked to strengthen oversight and improve compliance mechanisms. By June 2024, the number of licensed firms had doubled from 100 in 2021 to 200, reflecting both regulatory progress and market expansion.
The sector is subject to multiple layers of taxation, including a 7.5 percent excise duty on stakes and a 20 percent tax on winnings. Additional operational levies also apply, contributing to the total tax take from gambling companies.
Mixed Results Across Broader Tax Categories
While betting tax revenue surged, other key revenue streams underperformed. In the first eight months of the 2024/25 fiscal year, KRA collected Sh1.62 trillion in total exchequer and agency revenue—representing 95.6 percent of its target and a 5.1 percent increase year-over-year.
PAYE (pay-as-you-earn) tax collections amounted to Sh360.9 billion, or 92.8 percent of target, while non-oil taxes reached Sh349.6 billion, achieving 92.7 percent. Domestic VAT collections, however, fell short by 3.7 percent, totaling Sh236.5 billion. Oil-related taxes were the only category to exceed expectations, hitting Sh224.9 billion—101.2 percent of target.
Despite missing its broader VAT target, KRA noted improvements in recent VAT compliance. Between November 2024 and February 2025, VAT performance improved significantly, reaching a compliance rate of 99.3 percent. This was largely attributed to the rollout of prepopulated VAT return systems, which streamlined submissions and increased efficiency.
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