Betting Winnings Tax Calculator Kenya 2026

Tax on winnings

Winnings from betting, gaming, lotteries and similar activities are taxable in Kenya. The operator, such as a bookmaker, casino or lottery, deducts the tax from your winnings before paying you and sends it to KRA. The current rate is 20% of the winnings. Because it is withheld at source, you usually do not pay anything more on those winnings: the tax is final, and you only see the amount after tax.

How the calculation is done

The tax is the rate multiplied by the amount of the winnings. Whether the stake can be deducted first has been treated differently at different times, and operators have applied different bases. The calculator therefore has a tick box: leave it empty to tax the whole winnings, or tick it to tax the winnings less your stake. If your operator's statement shows the tax basis, use whichever matches it.

A worked example

For winnings of KES 10,000 on a stake of KES 4,000, taxing the whole winnings gives tax of KES 2,000.00. Deducting the stake first gives KES 1,200.00. The difference shows why the basis matters.

Excise duty on betting is separate

Betting is also subject to excise duty on the stakes, which the operator pays and which affects the odds and prices it offers. That is a different tax from the winnings tax: it is charged on the amount staked, not on what you win, and it is not shown on your winnings statement. The excise duty calculator lists the rate held for betting stakes.

What operators do

Licensed operators are required to account for the tax, register with KRA, file returns and pay by the due date. They must be licensed by the Betting Control and Licensing Board. Using an unlicensed operator brings other risks, including not receiving a tax record for your winnings.

Do I have to declare winnings?

If tax has been withheld and the tax is final, there is usually no separate declaration. However, if you earn a living by betting, for example as a professional, other rules might apply and the income could be treated as business income. Keep your statements. If you win a large amount, you may also be asked about the source of funds by your bank, so records help.

Losses

You cannot generally deduct betting losses from other income. The tax on winnings is charged even if you lost more overall during the year, because it is applied to each win rather than to the net result. Understanding this is part of understanding the real cost of betting.

Responsible gambling

Betting can be addictive, and the tax makes the long-run odds worse for the player. If gambling is causing you problems, talk to a counsellor or a helpline, and use the self-exclusion tools that licensed operators provide.

About the estimate

The rate comes from the rates held for this site and is marked unverified until checked against the Income Tax Act. The result is an estimate for information only.

Reading your betting statement

Operators normally show the stake, the gross winnings, the tax deducted and the net payout for each winning bet. Check these lines against this calculator when a payout looks lower than expected. If the amounts differ, ask the operator which basis it uses and whether any other charges, such as a withdrawal fee, were included. Tax is only part of the picture: the combined effect of tax on winnings and duty on stakes means the odds are less favourable than they look. Setting a budget before you play, and not chasing losses, matters more than any tax calculation.

Guides, tools and templates for this topic

Read next: VAT for small businesses in Kenya: when to register and what to charge, Turnover tax for small businesses in Kenya: rate, limits and when to use it, The KRA filing calendar for small businesses: every monthly and yearly deadline

Related calculators: Excise Duty Calculator, Tax on Dividends and Interest Calculator, Corporation Tax Calculator

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In short, the betting tax is a withholding tax, so the figure you see is normally the final one. Keep your betting statements for the year, because they show the winnings, the stakes and the tax taken, and they are the records to check if a payout ever looks wrong.