The Kenya Revenue Authority (KRA) has reported a significant rise in excise duty collections from the betting industry, with revenue hitting Ksh 13 billion in the 2024/25 fiscal year. Of this amount, Ksh 5.7 billion was collected as betting tax surpassing the set target of Ksh 5.5 billion and registering a performance rate of 103.7 percent.
According to KRA, this 22 percent growth compared to the previous fiscal year is largely attributed to the authority’s intensified Taxation at Source strategy. A key element of this initiative has been the full integration of betting firms’ systems with KRA’s own digital infrastructure, allowing for real-time monitoring of transactions. This technological advancement has significantly enhanced transparency, compliance, and efficiency in tax collection across the sector.
Betting, which has become increasingly popular in Kenya, particularly among the youth, has long posed regulatory and tax challenges. However, the recent developments suggest that the government is now better positioned to track betting transactions and ensure firms remit accurate taxes.
This revenue growth comes against the backdrop of a slowing national economy. According to the 2025 Economic Survey, Kenya’s economy grew by 4.7 percent in 2024, a drop from 5.7 percent in 2023. The report attributes the slowdown to both global economic challenges and domestic pressures, including reduced consumer spending and tighter access to credit.
Despite the economic headwinds, the betting sector has continued to show resilience, offering a vital source of tax revenue. The funds collected from excise duty and betting tax are crucial for financing public services amid growing fiscal constraints.
KRA has reaffirmed its commitment to strengthening compliance across all taxable sectors by leveraging technology and enhancing taxpayer engagement. The authority has also signaled plans to replicate the successful betting sector model in other industries to boost tax revenues further.
As the country seeks to navigate economic uncertainty, improved tax administration and targeted enforcement strategies are likely to play a central role in stabilizing public finances and sustaining development priorities.
