Kenya Beats Revenue Goal With $127.9m From Online Betting Taxes

Kenya’s betting tax collections surged during the 2025/26 financial year, reaching KSh16.53 billion (US$127.9 million).

That represented a 24.9% increase compared with the previous year and pushed collections to 115.9% of the annual target, according to the Kenya Revenue Authority’s performance report. The figure comfortably surpassed the KSh14.26 billion (US$110.3 million) goal set for the period.

Betting tax collections rose by 20.3% during the year, while withholding tax on betting and gaming jumped by 59.2% according to Focus Gaming News.

The strength of betting taxes stood out against other major categories. Corporation Tax grew by 14%, PAYE advanced 6.7%, and Domestic VAT rose 8.5%. Domestic Excise, however, dropped 10.9%.

“KRA has put in place numerous measures aimed at boosting compliance, broadening the tax base and streamlining revenue collection processes,” with the integration of betting and gaming companies listed among its taxation-at-source initiatives. The measure enables KRA to “collect information and revenue in (near) real-time directly at the source,” the report stated.

Revenue boost comes amid major gambling reforms

While revenue continue to grow, Kenya’s gambling sector is undergoing sweeping changes as the new Gambling Regulatory Authority begins its first licensing cycle.

Six fresh regulations took effect on June 30, replacing the old framework with rules that now cover licensing, advertising, operator conduct, foreign businesses, the National Lottery, and a dedicated appeals tribunal.

Operators licensed under the former Betting Control and Licensing Board have only 60 days to transition. Their permits remain valid for now, but continued operations will require approval under the new regime.

The reforms also raised capital requirements across nearly every vertical, with online bookmakers, casinos, and pool betting operators now needing at least KSh10 million, while a national lottery licence demands KSh2 billion.

Each gambling product must also hold its own licence and be certified by an accredited testing lab. Directors and shareholders must undergo individual accreditation, and operators are required to submit proof of trademark or business registration within 30 days of licensing.

The reforms also introduced new safeguards for players. Families can now apply directly to block relatives from gambling if the habit threatens finances or well‑being, while betting companies themselves can suspend accounts showing signs of distress or risky behavior.

These measures arrive as betting participation surges, GeoPoll found that 64% of Kenyans placed a bet in the past year, the highest rate recorded in Africa

Kenya Beats Revenue Goal With $127.9m From Online Betting Taxes

Revenue boost comes amid major gambling reforms

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