TLDR Kenya collected KSh16.53 billion ($127.9 million) in betting taxes for the 2025/26 financial year. The total is a 24.9% increase from the year before and 115.9% of the government’s target. Withholding tax on betting and gaming jumped 59.2% over the period. A new Gambling Regulatory Authority began enforcing six fresh rules on June 30. Families can now apply to block relatives from gambling under new player safety measures.
Kenya’s tax authority collected more money from betting than it expected to during the 2025/26 financial year. The Kenya Revenue Authority reported total betting tax collections of KSh16.53 billion, or about $127.9 million.
That number marks a 24.9% jump from the previous year. It also came in at 115.9% of the KSh14.26 billion target the government had set.
Betting tax collections alone grew by 20.3% during the year. Withholding tax tied to betting and gaming rose even faster, climbing 59.2%.
The Kenya Revenue Authority pointed to new compliance measures for the growth. One key change involved collecting tax information directly from betting and gaming companies in near real time.
How Other Tax Categories Performed
Betting taxes grew faster than most other revenue sources tracked by the authority. Corporation Tax increased by 14% over the same period.
PAYE, the tax deducted from employee wages, rose 6.7%. Domestic VAT grew by 8.5%.
Not every category moved higher. Domestic Excise tax actually fell by 10.9% during the year.
The Kenya Revenue Authority said its focus on broadening the tax base helped drive the gains. Officials described the source-based collection system as a tool for gathering both information and revenue faster.
New Gambling Rules Take Effect
The tax growth arrives as Kenya overhauls how it regulates gambling. Six new regulations took effect on June 30 under a newly formed Gambling Regulatory Authority.