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Statutory positions cited to the instrument. Not tax advice.

Kenya charges three separate gambling-related taxes. A 5% excise duty on amounts deposited for betting or gambling. A 5% withholding tax on money or money's worth paid or disbursed to a player's account. And a 20% withholding tax on winnings, which the Finance Act 2026 defines as a payout from a lottery or prize competition by a person licensed under the Gambling Control Act 2025.

Kenya betting tax, 2026

Three charges, three provisions, two of them at the same rate, which is exactly why they get merged. A 5% excise duty applies to money deposited for betting or gambling. A separate 5% withholding tax applies when money or money's worth is paid or disbursed to a player's account. A 20% withholding tax applies to winnings, and the Finance Act 2026 gave that word a narrow statutory meaning that most commentary ignores.

How it got here

PeriodOn the way inOn the way out
Before 1 July 202515% excise on the amount staked20% withholding on net winnings, excluding the stake
Finance Act 2025, from 1 July 2025Excise cut to 5% and the base moved from stake to amount deposited into the wallet20% on winnings repealed and the definition deleted. Replaced by 5% withholding on withdrawals from a betting wallet
Finance Act 2026, from 1 July 2026Excise stays 5% but the base widens to money's worth, credits, incentives, tokens, chips and tickets, whether provided by the player or the operator. Horse-racing exclusion deleted5% retained and widened: withdrawals redefined as money or money's worth paid or disbursed to the player's account. 20% reintroduced but confined to lottery and prize-competition payouts

The Finance Act 2025 was assented on 26 June 2025 and took effect 1 July 2025. The Finance Act 2026 was assented on 23 June 2026 and took effect 1 July 2026. Anyone quoting a rate without saying which period they mean is quoting from a stale page.

The four things nobody has resolved

  1. Does the 20% reach sportsbook and casino payouts, or only lottery and prize competitions? The statutory definition says the latter. Several affiliate sites assert the former.
  2. Gross or net of stake? The enacted text dropped the Bill's proposal to exclude the original stake, which left the question open.
  3. How do the 5% on disbursements and the 20% on winnings interact where both could apply? We found no KRA guidance.
  4. Is the 5% a final tax for the player, or must you still file? KRA's general withholding FAQ treats withholding on winnings paid to residents as final, but that FAQ predates the 2025 and 2026 churn.
Never accept a flat number from anyone, including us. There is no single correct answer to 'what percentage do Kenyans pay on winnings' as the law currently stands. A site that gives you one has either not read the definition or is hoping you will not.

The pages that go into each one

The 20%, and who it catchesWhy 5% left your withdrawalThe 5% on depositsOffshore crypto positionWho regulates this now
Was betting withholding tax scrapped in Kenya

It was repealed by the Finance Act 2025 and reintroduced by the Finance Act 2026 with a new and narrower definition. Pages saying it was simply scrapped are stuck in the 2025 position.

Can I get a betting tax refund

Refund mechanics depend on whether the withholding is final for you, which is one of the four unresolved questions above. Ask a Kenyan tax practitioner rather than an affiliate site.

Is the 5% on withdrawals an excise duty

No, and this is the single most repeated error in Kenyan betting content. The 5% on disbursements is a withholding tax. The 5% excise sits on deposits. Two taxes, two statutes, same rate.

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