In a significant move for Kenya’s betting industry, Members of Parliament have approved amendments to the Finance Bill 2025, reducing the excise duty on betting, lotteries, and prize competitions from 15% to 5%.
The decision, finalized on June 19, 2025, and now awaiting presidential assent, is set to lower the tax burden on millions of punters, with a Sh1,000 wager now attracting Sh50 in excise duty, down from Sh150.
This development has sparked widespread discussion about its impact on gamblers, betting firms, and government revenue.
The reduction reported by outlets like Business Daily, aims to ease the financial strain on bettors while addressing concerns about tax avoidance by foreign betting platforms.
The Finance Bill 2025 also shifts the point of taxation to when punters fund their betting wallets, a measure designed to curb revenue losses from offshore operators.
“This change ensures excise duty is collected at the point of transaction, closing loopholes exploited by unregulated platforms,” said Molo MP Kimani Kuria, chairperson of the Finance Committee, during parliamentary debates.
The decision follows years of contentious tax policies in Kenya’s gambling sector, which generates billions in revenue but has faced scrutiny for encouraging addiction, particularly among youth.
Data from the Kenya Revenue Authority (KRA) shows that between July 2024 and March 2025, the government collected Sh19.6 billion in taxes from gambling activities, a 15% increase from the previous year.
However, MPs like Homabay Town’s Peter Kaluma have raised concerns about the social costs, urging policies that balance revenue with public welfare. “Tax cuts must protect society, not just boost profits,” Kaluma stated.
The Betting Control and Licensing Board (BCLB) has welcomed the amendment, noting it could make legal betting more attractive compared to unregulated platforms.
Industry experts predict the tax cut will increase punters’ potential winnings, potentially boosting participation in a sector where 83% of Kenyans surveyed by Geopoll in 2024 admitted to placing bets.
However, critics warn that lower taxes could exacerbate gambling addiction without stricter regulations.
As the bill awaits President William Ruto’s signature, stakeholders are closely monitoring its implications. The tax cut is expected to take effect on July 1, 2025, pending approval, offering immediate relief to gamblers while reigniting debates about Kenya’s gambling policies and their socioeconomic impact.
