Kenya Revenue Authority highlights ADR route to resolving gambling tax disputes
The Kenya Revenue Authority encourages taxpayers to use Alternative Dispute Resolution to settle tax disputes outside court, a mechanism that’s set to benefit betting and gaming operators.
Kenya.- The Kenya Revenue Authority (KRA) has urged taxpayers to use Alternative Dispute Resolution (ADR) to settle disputes, offering betting and gambling operators a route to resolving gambling-related tax disagreements without going to court.
KRA said: “Not all tax disputes have to end up in court. Through Alternative Dispute Resolution (ADR), you can engage us directly and work towards an amicable solution.”
According to the KRA, ADR is a voluntary process that allows taxpayers and the tax authority to engage in facilitated discussions aimed at reaching a mutually agreed settlement outside formal court proceedings. The authority added: “To apply, submit a completed ADR application form and all supporting documents.”
The process involves the taxpayer, the Commissioner and a facilitator who guides discussions between both parties to help them reach a mutually agreed resolution.
KRA said that ADR is designed to promote dialogue and co-operation between the tax authority and taxpayers while helping resolve disputes more quickly and cost-effectively than formal litigation. The mechanism forms part of KRA’s broader efforts to streamline tax administration and promote faster resolution of disputes.
Betting tax obligations
While the KRA message was directed at taxpayers across all sectors, the process is relevant for Kenya’s betting and gaming industry, which has faced increasing scrutiny from regulators and tax authorities in recent years.
Kenya has one of Africa’s most tightly regulated gambling markets, with operators required to comply with several tax obligations administered by the KRA. These include a 15 per cent betting tax on gross gaming revenue, as well as 15 per cent taxes on gaming and lottery revenue.
Under reforms introduced through the Finance Act 2025, a 5 per cent excise duty applies to deposits made into betting wallets, while a 5 per cent withholding tax is charged on withdrawals from betting or gaming wallets, replacing the previous 20 per cent tax on player winnings. The withdrawal levy applies to the total amount withdrawn from the wallet rather than just profits.
Licensed operators must also pay the standard 30 per cent corporate income tax on profits, adding further layers to Kenya’s gambling tax regime. KRA added: “Explain to us, let us understand each other, and resolve it.”
