The Kenyan Parliament has approved the "2025 Finance Bill" which makes significant adjustments to the tax regime for the gambling industry, reducing the excise duty on gambling from 15% to 5%, expected to take effect after the President's signature. Meanwhile, the new tax mechanism also reforms the timing of tax collection—taxes will be deducted when users transfer funds from mobile wallets to gambling accounts, rather than at the time of placing bets, to expand regulatory coverage over foreign platforms.
According to the Ministry of Finance, between July 2024 and March 2025, gambling excise tax revenue grew from 8 billion shillings to 99.7 billion shillings (approximately 77.15 million USD), an increase of 24%, mainly due to an increase in betting amounts. At the same time, the withholding tax on winnings decreased by 15% year-on-year, indicating that high tax rates may affect the actual amount of winnings for players.
Social observers believe that the reduction in tax rates can increase the actual earnings of players, stimulate betting activity, and promote overall industry growth. Additionally, the new mechanism of immediate tax deduction on mobile wallet transfers can cover more offshore platforms and enhance regulatory effectiveness.
However, concerns about the social impact of the policy have been raised. Jane Mwikali, the chairperson of the Betting Control and Licensing Board, pointed out that some platforms mislead gambling as a shortcut to wealth, with their advertising focusing on "gambling finance," which could negatively impact individuals, families, and communities, calling for strengthened advertising regulation and consumer protection measures.
As the bill moves to the President's office awaiting signature, all eyes are on when the new tax rate will be implemented and how regulatory agencies will balance encouraging compliance, combating illegal gambling, and protecting vulnerable groups.
