The Kenya Revenue Authority (KRA) has collected KSh 12.47 billion in taxes from betting firms over the eight months leading to February 2025, making the sector one of the top performers in meeting tax contribution targets.
The latest disclosures from KRA indicate that excise duty on betting services and other related taxes achieved a performance rate of 110.2 percent during the period, outpacing several other tax categories.
KRA attributed the strong performance to improved integration with various betting companies, which has enhanced compliance and revenue collection.
“Excise on betting services and betting tax recorded collection of KSh 12.469 billion, translating to a performance rate of 110.2 percent against the target,” the tax authority noted.
For the financial year ending June 2024, KRA reported a total tax collection of KSh 24.2 billion from betting and gambling firms, marking a 26.2 percent increase from the KSh 17.2 billion collected in the previous year.
The betting industry is subject to multiple taxes, including a 7.5 percent excise duty on stakes and a 20 percent tax on winnings, in addition to other levies paid by operators.
Despite enhanced compliance measures, the number of betting companies in the country has surged, reaching 200 by June 2024, compared to 100 in 2021. This growth has contributed significantly to the increased tax revenue from the sector.
Between July 2024 and February 2025, KRA reported total revenue collections of Sh1.62 trillion, consisting of exchequer revenue for the Treasury and agency revenue collected on behalf of state corporations.
The tax agency aims to collect Sh2.68 trillion by the end of the 2024/25 financial year. However, several key tax categories have underperformed.
During the eight-month period, Pay As You Earn (PAYE) taxes generated Sh360.9 billion, reaching 92.8 percent of the set target. Non-oil taxes brought in Sh349.6 billion, achieving 92.7 percent of the expected collections.
Oil taxes emerged as the only other tax category to exceed its target, with collections amounting to Sh224.9 billion, reflecting a performance rate of 101.2 percent.
Domestic Value-Added Tax (VAT) collections between July 2024 and February 2025 totaled Sh236.5 billion, falling short of the target by 3.7 percent.
Despite this shortfall, KRA noted that domestic VAT collection had improved in recent months. “However, it is important to note that domestic VAT performance in the recent past (November 2024–February 2025) has shown great improvement, with a performance rate of 99.3 percent on account of the successful rollout of VAT pre-populated returns,” the authority stated.
As KRA pushes to meet its annual revenue target, the betting industry remains a crucial contributor, significantly outpacing other tax categories in terms of exceeding its collection goals.
