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How Does Betting Tax in Kenya Work in 2026?

Short answer

In 2026, Kenyan bettors pay a 5% excise duty on every deposit. The Finance Act, 2026 also brought back a 20% withholding tax on winnings, which the operator deducts before paying you. Most measures took effect on 1 July 2026.

Betting tax example: Gor Mahia vs Tusker

Gor MahiavsTuskerExample match · example odds · Kenyan Premier League

This is an illustration of how the two taxes can apply. Your operator's bet slip shows the final amount.

Kenya 2026 example: deposit KSh 100, 5% excise KSh 5, KSh 95 in wallet, bet wins at 2.00 for KSh 190, 20% tax on KSh 95 profit is KSh 19, you receive KSh 171Where your KSh 100 goes (example, odds 2.00)You depositKSh 1005% excise− KSh 5In walletKSh 95bet KSh 95 wins at 2.00Total returnKSh 19020% on profit− KSh 19You receiveKSh 171

You deposit KSh 100. The 5% excise duty is KSh 5, so your wallet gets KSh 95.

You stake (bet) all KSh 95 on Gor Mahia to win at 2.00 (example odds).

If the match ends 2–1 to Gor Mahia:

Step Calculation Amount
Deposit — KSh 100
5% deposit excise KSh 100 × 0.05 KSh 5
Money in wallet KSh 100 − KSh 5 KSh 95
Total return KSh 95 × 2.00 KSh 190
Winnings (profit) KSh 190 − KSh 95 KSh 95
20% withholding tax KSh 95 × 0.20 KSh 19
You receive KSh 190 − KSh 19 KSh 171

If Tusker win or the match is a draw, you lose the KSh 95 stake.

Use the payout calculator to check the return before tax.

What do bettors pay in 2026?

Bettors in Kenya pay two main taxes in 2026. Both are taken by the operator, not paid by you to the tax office.

  • 5% excise duty on deposits. This is taken when you put money into your betting account.
  • 20% withholding tax on winnings. This is deducted before the operator pays you.

These are the rules after the Finance Act, 2026. It was assented (signed into law) on 23 June 2026. Most measures took effect on 1 July 2026.

How does the deposit excise work?

A 5% excise duty applies to amounts you deposit for betting or gaming. Excise duty is a tax on a specific activity.

For every KSh 100 you deposit, KSh 5 goes to excise. Your wallet gets KSh 95. The tax is taken at the moment you deposit.

How does the tax on winnings work?

The Finance Act, 2026 reintroduced a 20% withholding tax on "winnings". Withholding tax is tax the payer keeps back before paying you. It applies to residents and non-residents.

The operator deducts it before you get paid. You do not need to pay it separately.

Reports describe the tax as applying to betting winnings. The tax firm EY describes the reintroduced definition as covering payouts from lotteries and prize competitions by licensed operators.

As of November 2026, guidance on exactly which payouts are covered was still being clarified. Check your bet slip and your operator's terms to see how it is applied to you.

What changed from 2025?

The big change is that the 20% withholding tax on winnings came back. It had been replaced in 2025.

Under the Finance Act 2025, from 1 July 2025:

  • The excise on stakes (the money you bet) was removed.
  • A 5% excise on deposits applied.
  • The 20% withholding tax on winnings was replaced with a 5% excise on withdrawals.

The Finance Act, 2026 then brought the 20% withholding tax on winnings back.

Rule From 1 July 2025 (Finance Act 2025) From 1 July 2026 (Finance Act, 2026)
Excise on deposits 5% 5%
Tax on winnings 20% withholding replaced by 5% excise on withdrawals 20% withholding on winnings reintroduced

Some reports say the 5% charge on withdrawals from the 2025 rules also stays in place in 2026. Operators may show this and other charges in their terms. Check them before you deposit or withdraw.

Who regulates betting in Kenya?

The Gambling Regulatory Authority (GRA) regulates betting in Kenya. It took over from the Betting Control and Licensing Board (BCLB) on 28 February 2026.

Only bet with operators licensed in Kenya. Tax rules themselves are handled by the Kenya Revenue Authority (KRA), the national tax office.

This page is general information, not tax advice. Rules change; check the Kenya Revenue Authority's current guidance.

Rules in other countries:

Common mistakes

  • Forgetting the 5% deposit excise when planning your budget.
  • Expecting the full return shown before tax to reach your wallet.
  • Assuming the 2025 rules still apply in 2026.
  • Not checking the bet slip for the final amount after tax.
  • Raising stakes to "cover" the tax, which only increases what you can lose.

FAQ

Do I pay betting tax myself in Kenya?

Usually not directly. The operator takes the 5% deposit excise when you deposit and deducts the 20% withholding tax before paying winnings.

Is the 20% tax charged on my whole return or only my profit?

The example on this page applies it to the profit part only, as an illustration. Check your bet slip and the operator's terms, because guidance was still being clarified as of November 2026.

When did the new betting tax rules start?

The Finance Act, 2026 was assented on 23 June 2026. Most of its measures took effect on 1 July 2026.

Who regulates betting in Kenya now?

The Gambling Regulatory Authority (GRA). It took over from the Betting Control and Licensing Board (BCLB) on 28 February 2026.

Bet responsibly. Only stake money you can afford to lose. Set a deposit limit in your bookmaker account before you start. If betting stops being fun, read where to get help.

Sources

By the OddsClass editorial team · Reviewed · For KE · How we write guides