Previously, players paid a 20 per cent tax only on net winnings, but the new law, effective July 1, 2025, ensures that every withdrawal from a betting account, whether profit or the original deposit<\/strong>, is subject to a 5 per cent levy.<\/p>\n\n\n\n The Parliamentary Budget Office (PBO) report stated, according to the Star: \u201cIf a player has deposited funds but decides to withdraw them without placing any bets, they could still face a five per cent tax on that withdrawal, despite not earning any income<\/strong>.\u201d<\/p>\n\n\n\n In regard to the implications for bettors, the PBO report stated: “In simple terms, if a player deposits Sh1,000 ($7)<\/strong> and later withdraws it without betting, they would lose Sh50 ($0.35)<\/strong>.”<\/p>\n\n\n\n A Business Insider report described this as \u201cblanket taxation\u201d and warned that these measures could “discourage casual gamblers<\/strong> and push players away from formal platforms”, raising concerns about the long-term sustainability<\/strong> of the industry.<\/p>\n\n\n\n The Finance Act 2025 also cuts the excise duty on deposits from 15 per cent to 5 per cent<\/strong>, which is applied whenever money is transferred from a mobile wallet into a betting account. This change is designed to make tax collection easier for operators and reduce extra paperwork.<\/p>\n\n\n\n The Kenya Revenue Authority (KRA)<\/strong> is responsible for enforcing the levy, and the government expects revenue<\/strong> from the betting sector to nearly double<\/strong>, from Sh5.4bn ($35m) to Sh11.4bn ($74m)<\/strong> in the 2025\/26 fiscal year, according to the PBO report.<\/p>\n\n\n\n The tax aims to simplify enforcement<\/strong>, broaden the tax base and reduce revenue leakages. While the short-term fiscal boost may be significant, the long-term impact on Kenya\u2019s rapidly growing online gambling market is uncertain. Mobile money operators and tech startups that rely on online gaming may face challenges<\/strong> as players adjust to the new rules<\/strong>.<\/p>\n\n\n\n Kenya\u2019s online gambling sector now faces a critical test: the tax on wallets, not just winnings, fundamentally changes how players interact with platforms<\/strong>, and the coming months will reveal whether it strengthens government revenue or drives bettors away.<\/p>\n\n\nBetting tax: Revenue boost, player risk<\/h2>\n\n\n\n
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