KRA said: \u201cNot all tax disputes have to end up in court<\/strong>. Through Alternative Dispute Resolution (ADR), you can engage us directly and work towards an amicable solution<\/strong>.\u201d<\/p>\n\n\n\n According to the KRA, ADR is a voluntary process<\/strong> that allows taxpayers and the tax authority to engage in facilitated discussions<\/strong> aimed at reaching a mutually agreed settlement outside formal court proceedings. The authority added: \u201cTo apply, submit a completed ADR application form<\/strong> and all supporting documents.\u201d<\/p>\n\n\n\n The process involves the taxpayer, the Commissioner and a facilitator <\/strong>who guides discussions between both parties to help them reach a mutually agreed resolution.<\/p>\n\n\n\n KRA said that ADR is designed to promote dialogue and co-operation<\/strong> between the tax authority and taxpayers while helping resolve disputes more quickly and cost-effectively<\/strong> than formal litigation. The mechanism forms part of KRA\u2019s broader efforts to streamline tax administration and promote faster resolution <\/strong>of disputes.<\/p>\n\n\n\n While the KRA message was directed at taxpayers across all sectors<\/strong>, the process is relevant for Kenya\u2019s betting and gaming industry, which has faced increasing scrutiny from regulators<\/strong> and tax authorities in recent years.<\/p>\n\n\n\n Kenya has one of Africa\u2019s most tightly regulated <\/strong>gambling markets, with operators required to comply with several tax obligations administered by the KRA. These include a 15 per cent betting tax on gross gaming revenue, as well as 15 per cent taxes on gaming and lottery revenue<\/strong>.<\/p>\n\n\n\n Under reforms introduced through the Finance Act 2025<\/strong>, a 5 per cent excise duty applies to deposits made into betting wallets, while a 5 per cent withholding tax<\/strong> is charged on withdrawals from betting or gaming wallets, replacing the previous 20 per cent tax on player winnings. The withdrawal levy <\/strong>applies to the total amount withdrawn from the wallet rather than just profits.<\/p>\n\n\n\n Licensed operators<\/strong> must also pay the standard 30 per cent corporate income tax on profits, adding further layers to Kenya\u2019s gambling tax regime. KRA added: \u201cExplain to us, let us understand each other, and resolve <\/strong>it.\u201d<\/p>\n\n\nBetting tax obligations<\/h2>\n\n\n\n
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