The Kenya Revenue Authority (KRA) collected a record-breaking Ksh13.2 billion from betting firms thanks to a smart tweak of how they apply taxes in the gambling industry.
During the 2024/2025 financial year, KRA revealed it surpassed its betting tax collection targets, raking in Ksh5.7 billion against a target of Ksh5.495 billion. This marked a 22 per cent growth from the previous year.
According to the taxman, the spike was largely because of its tech-driven approach in revenue collection, particularly among betting firms. Recently, KRA integrated betting companies' systems directly with its own, which allowed for real-time tracking of every bet and payout.
Previously, betting firms had to file their annual revenues with the KRA - a method which would lead to underreporting and potential tax evasion in the lucrative betting industry.
However, since the adoption of the 'taxation at source' strategy, the KRA is able to tax betting companies in real time by monitoring every transaction between the firms and their customers.
"The performance is attributed to KRA’s Taxation at Source initiatives, specifically, the integration of betting firms’ systems to KRA’s systems, enabling real-time monitoring of transactions. This has enhanced compliance and transparency and facilitated effective collection," KRA revealed.
This approach has, in turn, drastically reduced chances for operators to hide revenue while simultaneously making it easier for the taxman to claim his share.
The spike in betting tax is also a key indicator that while Kenyans may be struggling with the economy only growing by 4.7 per cent in 2024 (down from 5.7 per cent the year before), many are still turning to gambling as a potential means to earn some money.
Accounting for all sources of revenue, KRA's total for the year stood at Ksh2.571 trillion, which marked a 6.8 per cent increase from the previous financial year.
Officials have since attributed the growth to the success of the strategic revenue targeting while confirming that betting is no longer an afterthought in terms of tax compliance but rather a core part of the national tax base.
After the success in revenue collection in the betting industry, the KRA now plans to continue expanding the 'taxation at source' model across other sectors. The tax authority has, however, assured fairness and transparency in how the tax is collected.
Elsewhere, the KRA also recently announced the rollout of two new systems - the Independent Review of Objections (IRO) and the Technical Review Unit (TRU) from August 2025 – to ensure that disagreements about customs decisions are looked at fairly and transparently.
