This is a moving target — check the date. Betting taxation in Kenya has changed several times in recent years, and a further change is going through Parliament in 2026. The summary below reflects our understanding as of June 2026. For the rule that applies to you today, the Kenya Revenue Authority (KRA) is the authority.

The current position (Finance Act 2025)

Under the Finance Act 2025, betting tax shifted away from taxing stakes and winnings directly, to taxing money moving in and out of betting wallets:

In practice this means a deposit and a later withdrawal each carry a 5% charge, regardless of whether a particular bet won or lost. Operators deduct these automatically and remit them to the KRA, so the amounts usually appear already deducted rather than as something you file.

What it replaced

Before the 2025 change, the system worked differently: a 15% excise duty was applied at the point of placing a bet, and a 20% withholding tax was charged on winnings (excluding your original stake). You may still see older guides describing this arrangement — it's no longer the current rule under the Finance Act 2025.

The 2026 change in motion

A Finance Bill tabled in 2026 proposed reverting to a 20% withholding tax on net winnings (winnings minus the stake), reinstating a definition of "winnings" in the Income Tax Act. As of June 2026 this is a proposal that has been through public participation rather than a settled rule, so it may or may not take effect as drafted. If it passes, how and when betting is taxed could change again — another reason to confirm the current position with the KRA rather than relying on any single article, including this one.

Why we don't pin a single permanent number. On a reference site, a confidently stated tax rate that's six months out of date is worse than useless. We date this page and point you to the KRA on purpose — if you need certainty for a real decision, that's where to confirm it.

The practical takeaway

Whatever the headline rate, tax is a cost that comes off the top of betting — it makes an already negative-expectation activity a little more so. It's one more reason to treat betting as entertainment you budget for, not a way to make money. For the licensing side of doing this safely, see is online betting legal in Kenya? and the register; for payments, M-Pesa and betting.

By Samuel Kamau · Last reviewed June 2026. General information, not tax advice. Tax rules change frequently — confirm the current position with the KRA before relying on it.