Millions of Gamblers Face New ‘Betting Tax’: Here’s Why Your Winnings Could Shrink

Summary

• The president amesign a new bill that will add more tax on betting
• Kando na the 15% excise tax, 20% withholding tax, kutakuwa na a betting tax
• This tax itakuwa assigned to SHIF & retirement savings scheme
• The minimum deposit will have to increase to cover these savings

Kenyan gamblers are about to feel an extra pinch in their pockets after the government introduced a new law that will require part of every bet to go toward a mandatory savings contribution. This new measure, outlined in the recently enacted Gambling Control Act 2025, means that each stake will now include deductions for the Social Health Insurance Fund (SHIF) and a retirement savings scheme, effectively increasing the cost of betting in the country.

This move adds yet another layer to Kenya’s already complex and heavy gambling tax structure. At present, bettors pay a 15 percent excise tax on their stakes and a 20 percent withholding tax on every win. The new savings deduction will now make gambling even more expensive for millions of players across the country.

A New Authority with Expanded Powers

The implementation of these deductions will be overseen by the newly established Gambling Regulatory Authority of Kenya, which replaces the former Betting Control and Licensing Board (BCLB). The new body has been granted the power to develop and enforce the savings-related policies tied to gambling activities.

According to a report by Business Daily, the Authority is currently drafting the detailed regulations that will determine how the deductions are applied. The Gambling Control Act 2025 explicitly states:

“The Authority shall develop policies for the placing of bets for betting, lotteries, and gambling that include a savings component for social health insurance or social retirement benefit.”

This clause means that the minimum betting stake will automatically include a savings contribution. Currently, most betting platforms in Kenya have a minimum stake of Sh20, but under the new system, gamblers will have to load more funds into their accounts to accommodate both the bet and the mandatory savings portion.

The Act further specifies that:

“The minimum amount set under subsection (1) shall be inclusive of such a saving component for the player as shall be determined by the Authority in consultation with the Cabinet Secretary.”

Tapping into a Lucrative Sh150 Billion Market

The government’s decision is seen as part of a broader plan to expand the SHIF contribution base and support its universal healthcare agenda. With estimates showing that over 12 million Kenyans actively gamble, authorities see this as an opportunity to reach millions who are not in formal employment but regularly place bets.

Currently, all Kenyans are legally required to enroll in SHIF and contribute 2.75 percent of their income. However, many gamblers fall outside the formal contribution system. The new levy ensures that even informal sector participants contribute indirectly through their betting activities.

Still, the Act does not clarify whether gamblers who already contribute to SHIF through salaries or household categories will be exempt from this new deduction.

Given that Kenyans place bets totaling over Sh150 billion annually, the new requirement could deliver a substantial financial boost to government coffers. The funds are expected to help settle part of SHIF’s Sh76 billion in unpaid bills, while also promoting a savings culture among young adults, many of whom form the bulk of Kenya’s gambling population.

In this case, most Kenyans will opt for internationally licensed betting sites which are tax free.  Since these sportsbooks are not bound by the Kenyan laws, it means you don’t have to incur all these deductions.

Can the New Levies Slow Kenya’s Betting Craze?

The government has repeatedly tried to rein in Kenya’s growing gambling addiction by tightening regulations and raising taxes on the sector. However, these measures have done little to dampen the enthusiasm of millions who view betting as an easy way to make money.

Findings from the 2024 FinAccess Household Survey show that about 40.4 percent of Kenyans aged between 18 and 45 actively place bets. The joint report by the Central Bank of Kenya (CBK) and the Kenya National Bureau of Statistics (KNBS) revealed that the average gambler spends around Sh1,825 per month, often treating betting as a steady source of income rather than entertainment.

Kenya continues to lead the continent in the proportion of young gamblers, with 76 percent of its bettors aged below 35, surpassing even larger economies such as Nigeria and South Africa.

Whether the new levies will discourage this widespread betting culture or simply increase the financial burden on already stretched gamblers remains to be seen. What’s clear, however, is that every spin, bet, or wager will now cost a little more than it used to.

The Best Tax Free Betting Sites

Below are top betting sites that are licensed by international regulators such as the UK Gambling Commission, Malta Gaming Authority, and Curacao. Since these platforms are not bound by the Kenyan gambling laws, you can enjoy your winnings with not tax deductions.

Helabet

Mystake

Bet365