Kenya Reduces Excise Duty on Betting

On June 19, 2025, Members of Parliament approved significant amendments to the Finance Bill 2025, slashing excise duty on betting, lotteries, and prize competitions from 15% to 5%.

The reduction applies uniformly across all forms of stake-based gaming, including prize competitions and lotteries, providing comprehensive relief to the entire gambling ecosystem.

Alongside the rate reduction, legislators also modified when excise duty is collected, shifting from the point of placing a bet to when money transfers from a mobile wallet to a betting company wallet.

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Betting Revenue and Market Dynamics

Kenya’s gambling industry has demonstrated remarkable growth, with the market projected to reach nearly $831 million in 2025. 

The sports betting segment alone is expected to generate $166.46 million in 2025, with projections showing an annual growth rate of 4.02% through 2029. 

This tax reduction comes at a crucial time when the industry contributes over KSh24 billion annually to Kenya’s tax revenue, accounting for more than 1% of the national budget.

Between July 2024 and March 2025, excise duty collections rose by 24% to Sh9.97 billion, partly driven by increased punter wagers. The tax reduction is expected to stimulate even greater participation and overall turnover in the sector.

A New Era of Tax Stability

Kenyas Finance Minister John Mbadi has championed a philosophy of tax restraint as a pathway to economic stability and growth.

The Finance Bill 2025 represents the first time in recent memory that no new taxes have been introduced.This approach reflects a fundamental shift from previous fiscal strategies that relied heavily on increasing tax rates to boost revenue.

Instead, Mbadi’s philosophy focuses on enhancing tax revenue collection through administrative reforms, simplifying tax laws, and improving taxpayer compliance. 

With a stable and predictable tax environment, Kenya is becoming increasingly attractive to gaming and digital economy investors looking for sustainable, growth-friendly markets.

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