In the year ending June 2024, KRA collected Sh24.2 billion from betting and gambling companies, marking a 26.2 percent increase from the previous year’s Sh19.2 billion in taxes.
The Kenya Revenue Authority (KRA) attributed its strong performance to improved integration with various betting firms.
Alongside the integration of systems with betting firms, the number of licensed companies within the sector has also risen, going from 100 in 2021 to 200 by June of last year.
The taxation on the betting industry encompasses a 12.5 percent excise duty on stakes, 20 percent on winnings, as well as other operational taxes imposed on companies.
In the eight months leading up to the end of February, KRA reported a total collection of Sh1.62 trillion in exchequer revenue for the Treasury and agency revenue on behalf of state corporations. “This translates to a performance rate of 95.6 percent against target and a growth of 5.1 percent over collections same period in FY 2023/24,” the authority stated.
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With a target set to collect Sh2.68 trillion for the fiscal year concluding in June 2025, KRA faces challenges as many tax streams remain unresponsive. In the first eight months, KRA gathered Sh360.9 billion in pay-as-you-earn (PAYE) taxes, achieving 92.8 percent of the target, alongside non-oil taxes totaling Sh349.6 billion, or 92.7 percent.
Only oil taxes exceeded their target, with collections amounting to Sh224.9 billion (Sh101.2 percent). Between July 2024 and February 2025, domestic value-added tax (VAT) collections reached Sh236.5 billion, falling short of the target by 3.7 percent. “However, it is important to note that domestic VAT performance in the recent past (November 2024 – February 2025) has shown great improvement, with a performance rate of 99.3 percent on account of successful roll-out of VAT prepopulated returns,” the tax authority remarked.
