Kenyan Parliament Committee Blocks New Betting Taxes Amid Sector Pressure

Author: Maciej Grabowski

Date: 04.04.2025

Kenya’s National Assembly has blocked a Senate plan to introduce two new betting taxes, giving operators short-term relief as the industry braces for potential changes in the upcoming Finance Bill.

Lawmakers halt Senate-backed tax proposal

A National Assembly committee has rejected a Senate proposal to add two new 15% taxes on betting and gaming revenue. The changes were part of the Gaming Control Bill 2023. Senators aimed to tighten regulation and reduce gambling activity, but MPs pointed to a legal technicality. Under Article 109(5) of the Constitution, only the National Assembly can introduce Money Bills.

Industry still burdened by current tax regime

Kenya’s betting operators already face a heavy tax load. They pay a 15% tax on gross gaming revenue, a 30% corporate tax on profits, and must remit these payments daily by 1 a.m. Gamblers are taxed too—15% excise on every bet and 20% withholding on any winnings.

Several companies have left the market in recent years. Betsafe exited in May 2024, following Betin and SportPesa in 2020. Operators blame the high tax rates for damaging business performance.

Finance Bill may revisit tax plan

“Further, it was resolved that matters relating to taxation measures be withdrawn from the Bill pending the engagement of the Departmental Committee on Finance and the relevant stakeholders after which the same would be introduced through a subsequent Finance Bill”, The committee stated.

The Finance Bill 2025 is expected in Parliament this month, ahead of the new fiscal year starting in July.

Market keeps growing despite pressure

Even with rising regulation and taxes, the sector is growing. Kenya now has 221 licensed betting operators—more than double the number from 2021, according to the Betting Control and Licensing Board (BCLB).

Government revenues are also climbing. The Kenya Revenue Authority (KRA) collected KSh12.47 billion from betting between July 2024 and February 2025. The Central Bank of Kenya reports that Kenyans spent an average of KSh1,825 on betting last year. The country also leads Africa in youth gambling, outpacing larger economies like Nigeria and South Africa.