TLDR Kenya’s Finance Bill 2026 proposes a 20% withholding tax on gambling winnings for both residents and non-residents The bill also includes a 5% tax on deposits and withdrawals from gambling accounts The definition of deposits has been broadened to include chips, tokens, credits, and similar instruments Public participation on the bill opened May 11 and closed May 25, with the bill tabled in Parliament on April 30 Critics warn heavier taxes could push bettors toward offshore or unregulated platforms
Kenya is moving forward with plans to impose a 20% withholding tax on gambling winnings as part of its Finance Bill 2026. The bill was tabled in Parliament on April 30 and entered a public participation phase on May 11.
The public submission window closed on May 25. If the bill passes, it would mark a major shift in how Kenya taxes its betting industry.
Finance Bill 2026 Reverses Last Year’s Tax Approach
The proposed 20% tax on winnings would apply to both residents and non-residents. This comes just a year after Kenya revised its gambling tax framework to focus on a 5% levy on deposits and withdrawals.
Legal analysts at Cliffe Dekker Hofmeyr said the proposal represents a return to an earlier tax position that existed before the 2025 reforms. The firm noted the bill introduces “a 20 per cent withholding tax rate on winnings.”
Under the new framework, withdrawals would still face a 5% tax. Winnings would be taxed separately at the 20% rate.
The bill also broadens the definition of deposits. It now includes chips, tokens, credits, or similar instruments used in gambling activities.
Winnings are defined in the bill as payouts from licensed betting, gaming, lottery, or prize competition operators. The original stake is excluded from this definition.
Withdrawals are described as any