Kenya raises excise tax on betting stakes to 15% under new law

Kenya has increased the excise tax on betting stakes from 12.5% to 15% following the enactment of the Tax Laws (Amendment) Act 2024. Gamblers will now pay Sh15 instead of Sh12.5 for every Sh100 wagered.

This marks the second increase in excise tax on betting within a year. On July 1, 2023, the rate rose from 7.5% to 12.5%, signaling continued efforts to tighten regulations and boost revenue from the gambling industry.

Kenya’s betting sector operates under a multi-layered tax structure. In addition to the revised excise duty, gamblers face a 20% withholding tax on winnings, while betting companies are subject to a 30% corporate tax on profits and a 15% gambling tax on gross gaming revenue.

With the new tax hike, the government aims to balance revenue generation with efforts to curb excessive gambling, as debates around regulation and social impacts continue.