Kenya’s betting boom exceeds expectations with record tax revenue
Excise and betting taxes soar as digital integration and regulation boost Kenya’s gambling industry.
Kenya.-In a major boost for Kenya’s revenue performance, the country’s betting industry has emerged as one of the top-performing sectors, surpassing tax targets with a standout 117.2 per cent achievement rate.
The latest numbers from the Kenya Revenue Authority (KRA) clearly show how quickly the sector is growing and how it beat expectations, making it a strong economic driver.
KRA figures reveal excise duty from betting hit Ksh13.233bn ($99m) in the 2024/2025 financial year, comfortably beating the Ksh11.288bn ($84m) target. This marks a significant increase from the Ksh10.598bn ($79m) collected the previous year, highlighting the sector’s rapid growth.
The annual report also revealed that betting tax revenue, which is collected separately from excise, totalled Ksh5.70bn ($43m), exceeding the Ksh5.495bn ($41m) projection. That is a 103.7 per cent achievement, backed by strong 22 per cent year-on-year growth, underscoring the sector’s momentum and maturing structure.
Kenya’s push for smarter, tech-driven oversight is making a noticeable impact. Through a “taxation at source” system, betting platforms are now directly integrated with KRA’s digital infrastructure, according to Rispah Simiyu, Commissioner for Large and Medium Taxpayers.
“The performance is attributed to KRA’s Taxation at Source initiatives, specifically, integration of betting firms’ systems to KRA’s systems, enabling real-time monitoring of transactions. This has enhanced compliance and transparency and facilitated effective collection”, said Simiyu.
Tech boosts betting’s revenue amid economic challenges
Kenya’s tech-forward approach is helping to bring accountability and efficiency into focus, solidifying betting’s place as a viable and strategic contributor to the country’s revenue base.
Simiyu pointed to wider economic conditions detailed in the 2025 Economic Survey, which showed GDP growth slowing to 4.7 per cent in 2024, down from 5.7 per cent in 2023. Yet even with those headwinds, the betting sector delivered strong numbers, helping offset broader economic pressure.
“KRA’s total revenue collection for the financial year 2024/2025 stood at Ksh2.571 trn ($19.3bn), reflecting a 6.8 per cent growth, demonstrating resilience and the importance of strategic targeting in mobilising revenue from emerging sectors,” said Simiyu.
Meanwhile, major tax changes that took effect in the country in July 2025 reduced excise duty from 15 per cent to 5 per cent and shifted taxation from wagers to deposits.
The latest data signals a confident shift in Kenya’s economic landscape, where emerging industries like betting are not only thriving under smart regulation but also strengthening the national revenue strategy.
With digital oversight and increased transparency now at the core of its growth, the industry is positioned as a model for how innovation and policy alignment can drive real results.
