Kenya's Betting Tax History: From 0% to 20% — A Timeline
A comprehensive timeline of Kenya's betting tax legislation, from the introduction of excise duty in 2018 to the current 20% withholding tax.
Kenya's Betting Tax: A Complete History
Kenya's approach to taxing betting winnings has changed significantly over the past decade.
Pre-2018: No Withholding Tax
Before 2018, there was no withholding tax on betting winnings in Kenya. Bettors received their full gross payout via M-Pesa.
2018: Betting Excise Duty (7.5%)
The Finance Act 2018 introduced a 7.5% excise duty on betting winnings. This was the first time the Kenyan government directly taxed individual betting payouts.
2019–2020: Industry Disruption
The period saw significant regulatory changes, including temporary suspension of several bookmaker licences and ongoing debates about the appropriate tax rate.
July 2021: Finance Act 2021 — Rate Jumps to 20%
The most significant change came with the Finance Act 2021, which increased the withholding tax on betting winnings from 7.5% to 20%, effective July 2021.
Current Position (2021–Present)
The 20% withholding tax remains in effect. It applies to:
The tax is deducted at source by the licensed bookmaker before payment to the bettor's M-Pesa.
Use our M-Pesa Payout Calculator to calculate your exact net payout under the current 20% tax regime.
Responsible Gambling: Betting carries financial risk. If you or someone you know needs help, contact Befrienders Kenya: +254 722 178 177. This content is for educational purposes only. You must be 18+ to bet.