List of Taxes KRA Collects From Betting Companies and Winners
- KRA collected KSh 13.23 billion in excise duty from betting services, aided by real-time monitoring of betting firms through system integration
- A new 5% excise duty on deposits into betting wallets took effect on July 1, 2025, replacing the previous tax on wagered amounts
- SportPesa Mega Jackpot winner Bonnie Kamau will pay millions in taxes in line with the Finance Act 2025
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Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.
The Kenya Revenue Authority (KRA) surpassed its revenue target for the 2024/2025 financial year.
Source: Getty Images
It collected KSh 2.571 trillion against a target of KSh 2.555 trillion, marking a 100.6% performance rate. This was a 6.8% increase compared to the KSh 2.407 trillion collected in 2023/2024.
How much did KRA collect from betting services?
KRA recorded strong growth in taxes from betting services during the 2024/2025 financial year.
Earlier, TUKO.co.ke reported that it collected KSh 13.23 billion in excise duty from betting, against a KSh 11.29 billion target. This was a 22% increase from KSh 10.60 billion the previous year.
KRA also collected KSh 5.70 billion in betting tax, surpassing the projected KSh 5.50 billion. The authority attributed the growth to policies that have enabled the Taxation at Source initiatives.
This allowed KRA to integrate its system with those of betting firms, enabling real-time monitoring of all betting transactions.
The move improved compliance and transparency and helped seal revenue leaks in the betting sector. Betting services continue to be a key focus in efforts to boost domestic revenue.
Taxes on betting services
Betting services in Kenya have long been subject to regulatory scrutiny, with the KRA introducing various tax measures to tap into the booming sector.
In the past, the government relied heavily on taxation based on the amounts wagered. However, the legal framework has evolved with the latest changes introduced in the Finance Act 2025.
Excise duty on deposits
One of the most significant changes in 2025 was the introduction of a 5% excise duty on deposits made into a customer’s betting wallet in line with the tax regime that came into effect on July 1, 2025.
Previously, the excise duty applied to the amount wagered, but now, by taxing deposits, KRA can capture tax revenue earlier in the gaming process.
Rather than taxing 15% of the amount wagered or staked, excise duty is now imposed on the amount deposited by players into their betting wallet.
Source: Twitter
Gaming turnover tax
Betting operators in Kenya are subject to a gaming turnover tax. This is 15% of the gross turnover less the amount paid out to customers as winnings.
"The tax must be remitted by the 20th day of the month following the month of collection by a person carrying on a gaming business," KRA explains.
This tax is charged directly from the revenue collected by the betting company or operator.
Withholding Tax on winnings
In 2024, the Kenyan government introduced a 20% withholding tax on winnings from betting, gaming, and prize competitions. However, a last-minute amendment on Finance Bill 2025 shifted from withholding tax on winnings to a 5% withholding tax on withdrawals from the players betting wallet.
This tax is deducted directly from a player's earnings and remitted to the KRA by the betting operator.
SportPesa Mega Jackpot winner
Notably, Bonnie Kamau recently won the SportPesa Mega Jackpot after correctly predicting 17 games.
Bonnie Kamau secured a staggering KSh 424,660,618 after correctly predicting all the matches.
Kamau's winnings will be subject to the 5% withholding tax on withdrawals, which will amount to about KSh 21,233,030.
Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
