Starting in October 2022, sports betting sites in Kenya were onboarded into KRA‘s new system with the intention of daily collecting 7.5 percent Excise Duty on bets and 20 percent Withholding Tax on winnings. KRA Betting Tax System
It paid off as the betting sector generated Sh8.7 billion in revenue as of June 7, 2023.
Tax at source is a recent, widespread trend that enables government administrations to collect taxes directly from taxpayers as opposed to using the long-standing self-assessment system.
KRA is relying on the initiative to rapidly track betting company taxes and close tax evasion loopholes.
Read Also: Finance Bill 2023, A Bad Idea for The Sports Industry in Kenya
The chair of the Betting Control and Licensing Board (BCLB), Jane Makau, stated that the board is committed to expediting tax payments from the industry in order to increase revenue mobilization and collection.
With integration, the daily visibility is providing daily trends upon which compliance measures can be taken.
she said
According to Makau, All betting and gaming businesses doing business in the nation will have to sign up for the system.
I wish to reiterate the Government position that all gaming operators in the industry must board. It is therefore right to say that the ability to onboard will be a requirement for licensing.
said the BCLB Chairperson.
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