Kenya is among the most interesting countries in Africa when it comes to taxes and how they work. The legislation undergoes frequent changes and varies significantly depending on whether you are a bettor or an operator. For example, people can encounter a 5% excise duty connected to money deposited for betting purposes and 5% withholding tax on betting withdrawals. Licensed bookies, on the other hand, have separate obligations, such as a 15% betting tax and a 30% corporation tax.
Finding the latest information on Kenya’s tax regime is easier said than done. The rules have changed several times in the last couple of years, and you can still find outdated information. That’s why this article will go through everything you need to know as of August, 2026. Our betting guide reviews and compares top betting sites in the country that have no tax on local players and don’t charge them.
Kenya Betting Taxes at a Glance
Here is a look at all of the different betting taxes in Kenya as of now.
| Tax | Who does it affect? | Current rate | What is taxed? |
|---|---|---|---|
| Excise duty on betting | Betting Operators/customer transactions | 5% | Amount deposited for betting purposes |
| Withholding tax on betting withdrawals | Bettor | 5% | The amount that people withdraw |
| Withholding tax on statutory “winnings” | Lottery/prize competition winner | 20% | – |
| Betting tax | Bookmaker | 15% | Betting revenue / gross gaming revenue |
| Corporation tax | Resident betting company | 30% | Taxable corporate profit |
| VAT on betting services | Betting services | Excempt | Betting, gaming and lottery services are VAT-exempt |
Keep in mind that these betting percentages are not just added together. They apply to different tax bases and, often, to different kinds of taxpayers. It can be confusing, so we will go through each one.
Bettors face a 5% Excise Duty on Amounts Deposited for Betting Purposes
The first tax that bettors in Kenya will face is the excise duty on betting at 5%. It became a reality following the changes to the Financial Act 2025 in July 2025. Before that, the excise duty was 15% of the amount wagered, but it is now equal to 5% on the amount deposited into a customer’s betting wallet. This makes it easier to understand and keep track of.
There was another change to this tax and it came on June 23, 2026. Starting from July 1, 2026, the betting excise rate will be 5%, applied to amounts deposited for betting purposes. In other words, it is broader than before.
Let’s take a look at a practical example. If you decide to deposit KSh1000 for betting, you will owe a 5% tax of KSh50. Each operator uses a different technique to display the tax, so you may find significant differences.
It is also worth noting that horse-racing betting is no longer exempt from the 5% excise rule. This is important because some people used to focus on this sport because of it.
Kenyan Sports Bettors Also face a 5% Withholding Tax on their Withdrawals
In addition to the tax mentioned above, people who bet in Kenya will also have to pay a 5% tax on their withdrawals. Under current laws, withdrawal is the action people take to withdraw money from a betting or gaming wallet. In fact, there were changes to the definition starting from July 1, so withdrawal is as follows:
- An amount of money paid or disbursed to the account of a player by a person licensed under the Gambling Control Act 2025.
The idea behind the change is to present players with the option to indefinitely postpone the withholding-tax point by keeping money within the betting system and using it for further betting. It’s important to know that the 5% tax applies to both residents and non-residents.
Is there still a 20% tax on Betting Winnings?
The 20% tax still exists in Kenya, but it does not apply to ordinary sports-betting payouts. According to the Finance Act 2026, which came into effect on July 1, there are two differnet rules:
- Sports betting/gaming is subject to a 5% withholding tax when players add or withdraw funds from their accounts.
- Lottery or prize-competition winnings are those subject to a 20% withholind tax.
In other words, if you win KSh10,000 from a lottery or prize competition, there will be a 20% tax (in this case, KSh2000)
An interesting fact is that you can still find some KRA pages that will say you owe a 20% tax on betting winnings. That’s because they still refer to the former Betting, Lotteries and Gaming Act, which is no longer in force. As mentioned, Kenya updated its legislation in 2025 with the Finance Act 2025 and it did the same in 2026 with the Finance Act 2026.
Be very careful about which sources of information you follow, because it can be tricky. Ideally, you can always ask the specific online bookmaker for information and they should provide you with some insights.
How Much Betting Tax Does a Kenyan Bookmaker Pay?
The current legislation in Kenya requires licensed bookmakers to pay a 15% tax on betting revenue. It must be remitted by the 20th day of the month following the month of collection.
For example, if a bookmaker earned KSh10M and paid back KSh8M to customers, it means that its GGR is KSh2M. The 15% tax is based on that KSh2M, which in this case, is KSh300,000.
Many bookmakers hoped that the Gambling Control Act 2025 would abolish the 15% betting tax, but that did not happen. The same happened in 2026, so this tax remains in place today.
Bookmakers May Have to Pay a 30% Corporation Tax
In addition to the 15% mentioned above, bookmakers may also have to pay a 30% corporation tax. Every company registered in Kenya for tax purposes is subject to this requirement. In fact, the non-resident companies have an even higher tax – 37.5%.
The precise treatment of an individual gambling operator may depend on its corporate structure, residence, permanent establishment, and other factors. This, however, does not mean that bookmakers have to pay a total of a 45% tax.
For now, the 15% betting tax is applied to betting revenue/GGR, whereas the 30% is applied to taxable corporate income. In other words, the total tax depends on the bookie’s payouts, revenue, operating costs and other tax circumstances.
Bookies do NOT charge VAT on Bets
One of the advantages of betting in Kenya is that bookmakers do not have to add VAT. In fact, lotteries, gaming, and betting are all exempt from this requirement, and this was confirmed following the legislative changes in 2026. We hope this continues to be the case, as it is in many other parts of the world.
How Much Tax Does a Kenyan Sports Bettor and Bookmaker Actually Pay?
After checking all the numbers, the average Kenyan sports bettor will have to pay a 5% excise duty on deposits. If that player also wins something while playing (money or value) and when it is disbursed in a way that falls within the current definition of withdrawal, there is another 5% tax.
As mentioned, the 20% winning rate that you can find on some sites doesn’t automatically apply to ordinary sportsbook wins. The Finance Act 2026 states that it applies to winnings from lotteries and prize competitions.
As for bookmakers that have a license and reside in Kenya, they have to take care of the following:
- 5% betting excise duty
- 15% betting tax on betting revenue/GGR
- 30% corporation tax on taxable corporate income
What’s also interesting is that they have to withhold applicable bettor-side taxes and remit them to the regulator. This is very important because bookies will likely need a dedicated department to collect these sums.
Closing Thoughts – The Most Important 2026 Changes
As you have already seen, Kenya’s betting tax regime changed substantially in 2025 and 2026. The Financial Act from these years delivered some key changes and you need to double-check everything mentioned so far.
Bear in mind that Kenya is among the African countries with a dynamic legislative process. It’s very important to stay up to date with the latest developments because this will help you decide whether using a given site is worth it.
