Betting and gaming have been taxed in Kenya at two points: when the bet is placed and when the winnings are paid. Both have been changed by recent Finance Acts, and the combined effect is what bettors and operators care about.

Tax on the stake: excise duty

Excise duty is charged on the amount wagered or staked. The rate had been 20% and was reduced to 5% by the Finance Act, 2025. The Finance Act, 2026 then widened the base by removing the exclusion that applied to horse racing, so the 5% excise now applies more widely. The tax is charged on the operator, but it affects the odds and the price to the customer.

Tax on winnings: withholding tax

A 20% withholding tax applies to winnings from betting, lotteries and prize competitions, for residents and non-residents. The Finance Act, 2026 reintroduced it after it had been changed in earlier years. The operator withholds the tax and pays it to KRA, and the winner receives the balance.

What it means for a winner

On a win of KES 100,000, withholding at 20% takes KES 20,000, and the winner receives KES 80,000. Whether the stake is deducted in working out the tax depends on the rule in force for the period, so check how the operator applies it. Use the betting winnings tax calculator to see the tax and the amount received, with the stake treatment explained.

What it means for a bettor over a year

The tax on winnings is applied to winners, but the excise on stakes is built into the odds for everybody. A regular bettor who stakes KES 500,000 over a year bears excise through the cost of betting. Keep a record of stakes and winnings if you want to see your real result. The free daily takings and expenses log can record both sides, and the monthly income and expense planner compares them with the plan.

What it means for operators

Operators must charge the excise on stakes, withhold tax on winnings, pay both by the due dates and file the returns. Excise returns follow the Excise Duty Act, and withholding is due by the 20th of the following month; see withholding tax in Kenya explained. The withholding tax certificate register records each payment, works out the tax and shows the certificates issued. Other excise duties are described in excise duty on imports and vehicles, and the excise duty calculator covers services such as betting.

Is gambling income taxable as income?

Winnings with tax withheld at source are generally subject to a final tax. If gambling is a business, different rules apply, so ask a tax adviser.

Be careful

Betting is risky, and the taxes reduce the return. Set a budget and keep it; the free savings and sinking fund tracker is a better use of money for goals.

Keep up to date

The rates have moved a lot in a few years. See how to follow tax changes in Kenya to check the current position.

Rates are set by the Excise Duty Act and the Income Tax Act as amended. Confirm them with KRA.

Common questions

Who pays the excise on betting? The operator accounts for excise on amounts deposited by customers, so it forms part of the cost of betting rather than a separate bill to the bettor.

Is withholding tax on winnings final? The tax on winnings is withheld by the operator, and the withholding is treated as the tax due on that income for most winners.

Can I deduct betting losses? Betting stakes are personal spending and are not deductible against other income.