Kenya’s New Gambling Law Forces Bettors to Contribute to SHIF and Pension Schemes

Millions of Kenyan gamblers are now facing additional costs after the enactment of the Gambling Control Act 2025, which mandates that a portion of every betting stake must be channelled into the Social Health Insurance Fund (SHIF) and pension savings.

Under the new legislation, the Gambling Regulatory Authority of Kenya (GRAK) is empowered to develop policies requiring bettors to make savings contributions each time they place a bet, a lottery entry or other gambling activity.

The law stipulates:

“The Authority shall develop policies for placing of bets … that include a savings component for social health insurance or social retirement benefit.”

These mandatory contributions are piling on top of existing taxes – gamblers in Kenya already pay a 15% excise tax on stakes and a 20% withholding tax on winning bets.

With an estimated 12 million active bettors, according to local sources, the new deduction could deliver a significant boost to SHIF, which is reportedly facing an outstanding medical-bill backlog of around KSh 76 billion.

Industry observers warn, however, that while the policy may increase pension and health-insurance coverage, the added cost could push some punters towards unregulated betting platforms — potentially undermining consumer protection and tax integrity.