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TaxEffective 1 July 2025Updated 15 June 2026

Finance Act 2025 betting tax stable in 2026: 5% deposits, 5% withdrawals

The Finance Act 2025 betting tax structure (5% excise on deposits, 5% excise on withdrawals, no stake tax, no winnings withholding) is now fully bedded in across all GRA-licensed operators as of June 2026.

What changed

  • Finance Act 2025 (effective 1 July 2025) replaced the previous 7.5% deposit excise with a 5% rate.
  • Withdrawal excise of 5% on net winnings was introduced at the same time.
  • The 15% stake tax was removed entirely; no tax on the bet itself.
  • The 20% withholding tax on winnings was also removed; you keep the full payout.
  • All GRA-licensed Kenyan operators (Betika, SportPesa, OdiBets, BetPawa, Mozzart, Helabet, 1xBet, 22Bet, Shabiki) deduct the 5%/5% excise automatically.

Why it matters

The new structure is roughly tax-neutral for casual punters compared to the old model but heavily favours frequent low-stake players because the stake tax is gone. For a KES 100 bet at fair 2.0 odds with a KES 100 deposit and KES 200 withdrawal, the total Finance-Act-2025 tax is about KES 15 (KES 5 deposit + KES 10 withdrawal). Under the old model the same play attracted roughly KES 35 in tax. The headline number is smaller but the effective rate on net winnings is similar; the change mostly shifts the tax burden from stakes to settlement.

What to do

  • For operator-side: confirm your invoice statements show the 5% excise lines separately on deposits and withdrawals.
  • For employee-payroll punters: there is no tax filing requirement on betting winnings under the current model; the excise is final.
  • For business punters: betting income is not deductible as a business expense regardless of the model; check with your tax advisor.

Sources

Published 15 June 2026 on paybillke. Last verified 15 June 2026. We refresh news entries quarterly and within 48 hours of any directly relevant ecosystem change. Editorial process.