Player winnings slashed in Kenya amid tax hikes and tighter regulations
Despite record-breaking wagers, players take home less as tax hikes slash payouts and scrutiny tightens around the booming industry.
Kenya.- Betting firms in Kenya have cut player winnings amid rising tax issues. Newly released figures from Kenya’s Revenue Authority (KRA) highlight that while the amounts wagered on betting surged by 17.04 per cent between July 2024 and March 2025, winnings fell sharply by 14.87 per cent.
Total payouts fell from Sh28.27 billion ($218.8m) to Sh24.07 billion ($186.3m), according to Business Daily. It paints a bleak picture for those hoping to cash in on their bets.
What’s behind the drop? Experts point to shrinking odds and a growing tax burden that’s biting into player earnings. The KRA’s data on withheld taxes – a 20 per cent cut on player winnings – shows a corresponding slump from Sh5.65 billion ($43.7m) a year earlier to Sh4.81 billion ($37.2m). This decline was recorded in seven out of the nine months reviewed, with December and March as rare upticks.
Yet, betting remains wildly popular. In fact, Kenyans placed a daily average of Sh274.37 million ($2.12m) in bets during the nine-month window, while winning just Sh87.83 million ($697,726.4) per day.
Rising tax hikes
Despite the escalating taxation and shrinking rewards, betting continues to attract legions of hopefuls. This unsustainable trend hasn’t gone unnoticed, and authorities are tightening the screws.
The Betting Control and Licensing Board (BCLB) recently slapped a 30-day ban on all betting-related ads across media to “streamline the rules” and curb the glamorisation of gambling.
Meanwhile, betting firms are still doing fine. Gross revenue hit Sh32.09 billion ($248.3m), a 42.89 per cent jump from the previous year, fuelling a tax windfall. The KRA collected Sh9.98 billion ($77.2m) in excise duty alone – a 24.45 per cent hike from last year.
Still, cracks are showing. Government projections hint at a cooling trend, with expected tax revenues from betting set to dip by Sh4.2 billion ($32.5m) this year.
But for now, the house is still winning, and punters are footing the bill.
