Kenya to reduce betting excise tax
The move comes just months after the tax rate was raised.
Kenya.- The National Assembly has voted to approve a reduction in the country’s betting excise tax from 15 to 5 per cent. The move comes just months after the rate was raised from 12.5 per cent.
The amendments outined in the 2025 Finance Bill would apply the tax at the point when funds are transferred from a mobile money wallet to a betting account rather than when a bet is placed. The tax will apply to lotteries and prize competitions as well as betting.
Finance Committee chair Kimani Kuria has said that the change is intended to increase compliance because some overseas digital operators were evading levies under the current system. It’s expected that the reduced cost of placing bets will enefit gambling operators and may lead to a rise in customer numbers, but some warn that higher gambling participation and spending could worsen financial harm.
The Kenya Revenue Authority (KRA) has also ordered operators to withhold 20 per cent of player winnings for tax purposes and to pay a 15 per cent tax on gross gaming revenue (total bets minus payouts).
Geopoll has reported that Kenya’s betting market continues to grow rapidly, with the value of bets rising by 17 per cent to KSh 75.18bn (£507.5m) between July 2024 and March 2025. The Ministry of Health has already raised concerns over gambling harm, particularly amoung young players.
New advertising restrictions for gambling in Kenya.
At the start of this month, the Betting Control and Licensing Board (BCLB) introduced new regulations for gambling ads following a 30-day ban. The new rules require operators to have gambling ads approved by the BCLB and classified by the Kenya Film Classification Board (KFCB) under the Betting, Lotteries and Gaming Act (CAP 131) and the Films and Stage Plays Act (CAP 222) before broadcast or publication.
Gambling ads must not depict betting as glamorous or feature endorsements from celebrities, influencerss or testimonials. Meanwhile, ads must display the operator’s BCLB licence number, must include a responsible gambling message and must specify that gambling is “Not for persons under 18 years”. Operators are also required to provide clear contact information, including a customer care number, and affirm that the gambling service is authorised and regulated by the BCLB.
Outdoor advertising will be limited to digital billboards, with a restriction of no more than two gambling-related ads per hour. Roadshow promotions have been banned.
