Major Tax Changes for Betting & Gaming Operators Under Kenya’s Finance Act 2025

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The Finance Act 2025, which was signed into law on 26th June 2025, introduces significant tax reforms that directly impact all businesses operating in Kenya’s gaming and gambling sector.

Key amendments include:

1. Withholding Tax (WHT): The WHT applicable to gambling has been revised to 5% of withdrawals from a punter’s betting wallet. This replaces the previous rate of 20% applied to net winnings; and

   
   

2. Excise Duty: The Excise Duty on betting, gaming, prize competitions, and lotteries has been reduced from 15% to 5%. However, the basis of taxation has shifted — Excise will now be applied to the amount deposited into a customer’s betting wallet rather than the amount wagered.

These amendments represent a major shift in Kenya’s gaming tax framework and will require careful recalibration of compliance mechanisms, customer terms and conditions, and internal accounting systems. We support operators with responsive, practical legal advice tailored to Kenya’s fast-evolving regulatory environment.

To ensure your operations remain compliant and strategically aligned, get in touch with us at sarinke@mckayadvocates.com. Let’s help you stay ahead of the curve.