Gambling is for adults aged 18+ only.
Only play with money you can afford to lose. paybillke does not confirm licences: GRA publishes no register. Check what the operator prints about its licence, and confirm on gra.go.ke before depositing. If gambling is becoming a problem, support is available. Call the GRA helpline on 0800 723 770.
Since 1 July 2026, Kenyan bettors pay a 5% excise on deposits, a 5% withholding tax on money paid out to them, and a 20% withholding tax on winnings. The operator deducts each one before you receive anything. There is no tax on the stake.
What you pay, step by step
1. When you deposit: 5% excise
The excise rate stays at 5%. What changed is the base: the Finance Act 2026 charges it on any amount deposited for betting or gaming, whether or not the money sits in a betting wallet, and it removed the old exclusion for horse racing. A KES 100 deposit from M-PESA reaches the wallet as KES 95. The M-PESA paybill fee is a separate cost.
2. When you bet: nothing
There is no tax on the stake. With KES 95 in the wallet, you can stake all KES 95.
3. When you win: 20% withholding tax on winnings
The Finance Act 2026 reintroduced a 20% withholding tax on winnings, for residents and non-residents. It defines winnings as a payout from a lottery or prize competition by an operator licensed under the Gambling Control Act 2025. Reporting when the Act took effect, Kenyans.co.ke gave the example of a KSh 100,000 win paying out KSh 80,000, with the operator sending KSh 20,000 to KRA.
4. When money is paid out: 5% withholding tax
The 5% withholding tax on withdrawals, brought in by the Finance Act 2025, still applies. The Finance Act 2026 redefined a withdrawal as money paid or disbursed to your account, so the tax point is when a payout is credited to you rather than only when you move money to M-PESA.
What each Finance Act changed
- Finance Act 2025: removed the stake excise and the 20% withholding tax on winnings, and brought in a 5% excise on deposits and a 5% withholding tax on withdrawals.
- Finance Act 2026 (in force 1 July 2026): reintroduced the 20% withholding tax on winnings, moved the 5% withdrawal tax to the moment money is paid to you, widened the 5% excise to any amount deposited for betting, and removed the horse-racing exclusion.
Do I declare betting income to KRA?
Not for winnings from a Kenyan licensed operator: the operator withholds the tax and pays it to KRA. Keep your statements in case you are asked to explain a large deposit into your bank, for example when buying property.
The 2026 gambling regulations
Separately from tax, the Gambling Regulatory Authority (GRA), which replaced the BCLB under the Gambling Control Act 2025, published regulations in June and July 2026 covering licensing, the conduct of gambling operations, foreign-based operators, advertising and appeals. See our GRA explainer and how to check a betting licence.
Frequently asked questions
How much tax is charged on betting in Kenya in 2026?
Since 1 July 2026 there are three deductions: a 5% excise on money you deposit to bet, a 5% withholding tax on money paid out to your account, and a 20% withholding tax on winnings, reintroduced by the Finance Act 2026. There is no tax on the stake itself. The operator deducts all of them and remits them to KRA.
Is the 20% withholding tax on winnings back?
Yes. The Finance Act 2025 had dropped it, and the Finance Act 2026 reintroduced it at 20% for residents and non-residents from 1 July 2026. The Act defines winnings as a payout from a lottery or prize competition by an operator licensed under the Gambling Control Act 2025. Your bet statement shows whether it was taken on a given win.
When is the 5% withdrawal tax taken now?
Earlier than before. The Finance Act 2026 redefined a withdrawal as money paid or disbursed to your account, so the tax point is when a payout is credited to you, not only when you move money to M-PESA.
Is there a tax on each stake?
No. A KES 100 deposit reaches the wallet as KES 95 after the 5% deposit excise, and all KES 95 can be staked with no further deduction.
Do I need to declare betting winnings to KRA myself?
Not for winnings from a Kenyan licensed operator, which withholds the tax and pays it to KRA. Keep your statements in case you need to show where a large sum came from.
If betting stops being fun
Every deduction above makes each shilling you deposit worth less before the bet runs. Set a deposit limit with your operator and keep to it. GRA runs a self-exclusion process and a toll-free line, 0800 723 770. Our responsible gambling guide has more.
Sources
- EY Kenya, Finance Act 2026 tax highlights (read 19 October 2026)
- EY Global Tax News, Kenya enacts Finance Act 2026
- Kenyans.co.ke, Finance Act 2026 takes effect (2 July 2026)
- KRA, Kenya Revenue Authority
- GRA, Gambling Regulatory Authority
- Betting payout calculator
Related references
Curated external sources we cite. Open in a new tab.