Kenyan bettors wagered KSh88.5bn on internet betting between July 2022 and June 2023, reportedly calculated from KSh6.64bn in gambling excise duty submitted to the Kenya Revenue Authority. The report says the duty was 7.5% of stakes and notes that the rate rose to 12.5% from July under the 2023 Finance Act.
The reported stakes and tax-rate change inform operators and investors about Kenya’s online betting market and tax obligations.
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Kenya’s Court of Appeal stayed a February ruling that had invalidated a 7.5% excise duty on funds set aside for betting, pending the Kenya Revenue Authority’s appeal. The judges said the appeal was arguable and that uncollected tax might not be recoverable if the authority succeeded. The underlying ruling found that parts of the tax changes were unconstitutional because of shortcomings in public consultation and administrative procedure.
Kenya’s Revenue Authority said it had begun integrating the final 87 betting firms into its tax system. The integration is intended to support daily calculation and transmission of betting taxes; the authority said 36 firms had already been connected.
Kenya Revenue Authority collected more than KSh15.1bn from betting excise duty and withholding tax on winnings in the 2022/23 financial year, according to a report. The authority collected KSh6.64bn in excise duty and KSh8.601bn in withholding tax; it attributed the growth to integrating betting companies into its tax system. KRA said 36 companies had been integrated, with a further 87 targeted.
Kenya Revenue Authority’s betting tax system had onboarded 87 additional betting firms by 14 June 2023, according to the report. The system was introduced in October 2022 to support daily collection of 7.5% excise duty on bets and 20% withholding tax on winnings. Betting Control and Licensing Board chair Jane Makau said onboarding would be a licensing requirement for all betting and gaming businesses operating in Kenya.
Kenya's Finance Bill 2023 proposes increasing excise tax on betting stakes from 7.5% to 20%, according to the report. It also proposes defining winnings to include the amount wagered, which could subject punters to withholding tax on gross payouts; tax experts cited in the report said the changes may face legal challenges.