Kenya Revenue Authority Surpasses KSh 11.2 Billion Tax Target from Betting Services
- The Kenya Revenue Authority (KRA) reported that it had surpassed its target for excise duty collected from betting services in the 2024/2025 financial year
- KRA attributed the growth in betting-related revenues to its Taxation at Source initiatives and the integration of betting firms' systems with its own
- KRA surpassed its total revenue target for the financial year, collecting KSh 2.571 trillion compared to the target of KSh 2.555 trillion
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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) has reported a strong performance in excise duty collections from betting services for the 2024/2025 financial year.
Source: UGC
KRA said that it achieved 117.2% of its target, collecting KSh 13.23 billion against a set target of KSh 11.29 billion.
According to KRA, betting tax also exceeded expectations, generating KSh 5.70 billion compared to the projected KSh 5.50 billion.
This represented a 22% growth in betting tax revenue compared to the previous year as the excise duty from betting services rose from KSh 10.60 billion in the last financial year to KSh 13.23 billion in 2024/2025.
How did KRA increase revenues from betting services?
The growth has been attributed to KRA’s Taxation at Source initiatives and the integration of betting firms’ systems with KRA's to enable real-time monitoring of transactions.
"The performance is attributed to KRA’s Taxation at Source initiatives specifically, integration of betting firms’ systems to KRA’s systems, enabling real-time monitoring of transactions. This has enhanced compliance and transparency and facilitated effective collection," KRA explained in a statement seen by TUKO.co.ke.
The authority said the achievement came at a time when the country has been facing economic pressures.
The 2025 Economic Survey reported that Kenya’s economy grew by 4.7% in 2024, down from 5.7% in 2023 due to global slowdowns and local challenges in consumption and credit.
Commissioner for Large and Medium Taxpayers, Rispah Simiyu, said KRA remains committed to expanding the tax base through Taxation at Source measures to promote fairness, efficiency, and transparency in tax administration.
Source: Twitter
How much revenue did KRA collect?
Notably, KRA exceeded its revenue target for the 2024/2025 financial year.
Earlier, TUKO.co.ke reported that the tax agency collected KSh 2.571 trillion against the target of KSh 2.555 trillion.
This marked a 100.6% performance rate and 6.8% growth compared to KSh 2.407 trillion collected in 2023/2024.
Domestic revenues rose by 4.8% to KSh 1.688 trillion while customs revenue increased by 11.1% to KSh 879.33 billion.
Domestic VAT collections reached KSh 327.34 billion, showing a 4.2% growth. The total revenues collected exceeded the target by KSh 40.47 billion.
KRA collects KSh 86 billion from tax disputes
Additionally, KRA recovered KSh 86.52 billion from tax disputes with firms and individuals in the financial year ended June 2025.
The amount was 43.08% higher than the KSh 60.47 billion collected in 2023/2024. According to Commissioner for Legal Services Paul Matuku, KRA resolved 2,389 successful cases through litigation and alternative dispute resolution (ADR).
ADR unlocked KSh 18.9 billion, while court cases brought in KSh 67.6 billion. The taxman attributed the growth to the rising acceptance of out-of-court settlements, which provide a faster and more flexible solution for taxpayers.
Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
