Kenya betting tax revenue jumps 24.9% to US$127.9m as KRA beats target
Kenya’s betting tax collections climbed 24.9 per cent to KSh16.527bn (US$127.9m) in FY2025/26, beating the Kenya Revenue Authority’s annual target as stronger compliance measures drove revenue growth.
Kenya.- Betting taxes reached KSh16.527bn (US$127.9m) during Kenya’s 2025/26 financial year, after recording 24.9 per cent growth and achieving a performance rate of 115.9 per cent against the annual target, according to the Kenya Revenue Authority’s (KRA) FY2025/26 Revenue Performance Report. Betting taxes exceeded KRA’s target of KSh14.261bn (US$110.3m).
Betting also outperformed several of Kenya’s major tax categories during the financial year. According to the KRA report, Corporation Tax recorded growth of 14.0 per cent, Domestic VAT rose 8.5 per cent and PAYE increased 6.7 per cent, while Domestic Excise declined by 10.9 per cent.
The report states that “KRA has put in place numerous measures aimed at boosting compliance, broadening the tax base and streamlining revenue collection processes,” with the integration of betting and gaming companies listed among its taxation-at-source initiatives. The measure enables KRA to “collect information and revenue in (near) real-time directly at the source.”
Betting tax collections increased by 20.3 per cent during the financial year, while withholding tax on betting and gaming rose by 59.2 per cent, indicating broader growth in gambling-related tax revenue, according to The Star’s reporting of the KRA FY2025/26 revenue briefing,
Overall, KRA collected KSh2.844tn (US$22.0bn) in revenue during the 2025/26 financial year, representing 10.6 per cent growth compared with the previous year.
The figures reflect the growing contribution of betting taxes to Kenya’s revenue collection as KRA continues to expand compliance and revenue collection initiatives.
The results also come as Kenya continues to implement reforms under the Finance Act 2026, which introduced a 20 per cent withholding tax on gambling winnings from July 1.
Separately, Kenya is implementing reforms under the Gambling Control Act, 2025, which established the Gambling Regulatory Authority of Kenya and introduced a revised licensing and supervisory framework for operators. The regulator is also rolling out a central monitoring system designed to provide greater visibility over gambling transactions, supporting improved compliance, transparency and tax collection across the industry.
