President Ruto approves new excise duty on bets
The new betting excise duty means that for every Sh100 wagered, Sh5 would be deducted instead of the previous Sh15.
Kenya.- Kenyan President William Ruto has given assent to the Finance Bill 2025, which reduces excise duty on bets from 15 per cent to 5 per cent. The new rate also covers other forms of stake-based gaming in the country, including lotteries and prize competitions.
The new law is enacted following parliamentary approval on June 19, 2025. In addition to the rate cut, lawmakers also changed the timing of excise duty collection. Bettors will now pay tax when they move funds from their mobile wallet to a betting account, instead of when they place a wager. According to majority leader Kimani Ichungwa, this change ensures that the government collects excise duty from all betting operations, including those operating virtually or outside the country.
The new tax approach supports Kenya Revenue Authority (KRA)’s efforts to curb revenue leakages in the betting industry by capturing income from offshore-licensed platforms that previously escaped taxation. For instance, from July 2024 to March 2025, the government collected Sh9.97 billion (€65,407) in excise duty, a 24 per cent increase from Sh8 billion (€52,483) in the previous period. However, withholding tax revenue from winnings dropped by 15 per cent to Sh4.81 billion (€31,555) from Sh5.65 billion (€37,066) during the same timeframe.
In currency terms, the new betting excise duty means that for every Sh100 wagered, Sh5 would be deducted instead of the previous Sh15. As betting costs decrease, analysts suggest that punters will likely increase their stakes, potentially leading to higher betting volumes and larger payouts.
This development comes as Kenya grapples with addressing the increasing rate of online gambling addiction, particularly among its youth. The government has recently issued sweeping reforms targeting the promotion of online gambling in its jurisdiction.
