The new law is enacted following parliamentary approval<\/a> on June 19, 2025<\/strong>. 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. <\/p>\n\n\n\n The new tax approach supports Kenya Revenue Authority<\/strong> (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<\/strong>, the government collected Sh9.97 billion<\/strong> (\u20ac65,407) in excise duty, a 24 per cent increase<\/strong> from Sh8 billion<\/strong> (\u20ac52,483) in the previous period. However, withholding tax revenue from winnings dropped by 15 per cent to Sh4.81 billion<\/strong> (\u20ac31,555) from Sh5.65 billion<\/strong> (\u20ac37,066) during the same timeframe.<\/p>\n\n\n\n In currency terms, the new betting excise duty means that for every Sh100<\/strong> wagered, Sh5<\/strong> would be deducted instead of the previous Sh15<\/strong>. As betting costs decrease, analysts suggest that punters will likely increase their stakes, potentially leading to higher betting volumes and larger payouts.<\/p>\n\n\n\n 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<\/a> targeting the promotion of online gambling in its jurisdiction.<\/p>\n\n\n![\"\"](\"https:\/\/focusgn.com\/africa\/wp-content\/uploads\/sites\/7\/2025\/06\/photo-1675855549790-20aabcde8db2-300x200.jpg\")
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