Kenyan bettors face new mandatory deductions for health and pension under Gambling Control Act
New policy links every bet to social protection, increasing costs for players while boosting SHIF and NSSF contributions.
Kenya.- Kenya’s gambling landscape is facing a major overhaul as new regulations link every bet to national social protection programs. Players must now contribute to the Social Health Insurance Fund (SHIF) and the National Social Security Fund (NSSF), on top of existing excise and withholding taxes. This move increases the financial burden on bettors while channeling gambling proceeds into health and retirement schemes.
The regulator is currently drafting regulations to implement the mandatory deductions, so the policy is soon to be required. The Betting Control and Licensing Board (BCLB), now operating as the Gambling Regulatory Authority of Kenya (GRAK), has instructed operators to prepare for compliance, with automated systems expected to track deductions once active.
The Gambling Control Act 2025 empowers the authority to mandate these contributions. It states: “The Authority (Gambling Regulatory Authority of Kenya) shall develop policies for placing of bets for betting, lotteries and gambling that include a savings component for social health insurance or social retirement benefit.”
It further specifies: “The minimum amount set under subsection (1) shall be inclusive of such a saving component for the player as shall be determined by the Authority in consultation with the Cabinet Secretary.”
Kenya Institute for Public Policy Research and Analysis (KIPPRA) survey found that 62 per cent of respondents bet weekly, often supplementing “modest incomes averaging KES25,000(€194), with many using small stakes for essentials such as school fees or rent”, according to Bana Media. It also reported that licensed operators have begun automating compliance systems to process the new SHIF and NSSF deductions.
Betting costs and estimates
Industry insiders warn the levies could make betting costlier after a 5 per cent excise duty increase earlier this year. Some operators expect rising costs and reduced customer activity as bettors seek cheaper alternatives. Advocacy groups caution stricter rules may push players toward unlicensed gambling, while officials argue the deductions promote a savings culture and strengthen social protection, vital in a country where 36 per cent of citizens live below the poverty line.
Following this development, Kenyan media outlets have conducted their own calculations using these estimates to illustrate potential costs for bettors.
A Techweez report provided illustrative figures: “The Social Health Insurance Fund (SHIF) takes 2.75 per cent, and the National Social Security Fund (NSSF) adds up to 6 per cent on qualifying amounts. This comes on top of existing taxes: a 15 per cent excise duty on stakes and a 20 per cent withholding tax on winnings.”
The report added: “In simple terms, placing a KES1,000(€7.8) bet on a football match will see you lose KES118(€0.92) before the game kicks off. If you win, another chunk will go to a mandatory social contribution. It is a structure that makes Kenya’s betting scene possibly the most expensive in East Africa.”
The policy also aims to expand SHIF membership and stabilise finances, as the fund faces KES76bn(€588.2m) in unpaid medical bills. By linking betting proceeds to national health and pension schemes, officials hope to strengthen Kenya’s social protection network while formalising informal earnings from gambling.
