TLDR Kenya’s Gambling Regulatory Authority (GRA) has urged Parliament to drop a proposed 20% tax on gambling winnings from Finance Bill 2026 The regulator says taxing non-cash prizes like electronics or spa treatments would be unenforceable GRA wants taxation limited to cash deposits only, calling it “simple, stable and predictable” Tax collections already rose 11% to Ksh28.45 billion (~$220m) by April 2026 under the current deposit-based system The Finance Bill 2026 is still under parliamentary review following public submissions that closed May 25
Kenya’s gambling regulator is pushing back against a government plan to bring back a 20% tax on gambling winnings, saying the proposal is too hard to enforce and could cause problems for the industry.
The tax is included in Finance Bill 2026. It would bring back a withholding tax on winnings from prize competitions and short-term lotteries. This would reverse changes made in 2025, when Kenya moved to a system that taxes deposits and withdrawals instead.
What the Regulator Said
The Gambling Regulatory Authority (GRA) made its case before the National Assembly’s Finance and National Planning Committee on May 26.
GRA Director General Peter M. Karimi told MPs that prize competitions are “primarily marketing promotions where players do not even wager a stake.”
The regulator warned that taxing non-cash prizes — things like electronics, household items, spa treatments, or car servicing — would be practically impossible to enforce.
The GRA also asked Parliament to remove the definition of “winnings” from gambling law entirely, saying it creates classification problems.
The Dispute Over Chips and Credits
A separate issue came up around how to define taxable deposits.
Lawmakers are looking at broadening the tax base to include chips, tokens, and credits. But the GRA said these often come from free bets or promotions and don’t always