What tax you actually pay on betting in Kenya
Two taxes come out of your money when you bet in Kenya: a 5% excise duty when you deposit, and a 20% withholding tax on your winnings when you cash out. Both changed on 1 July 2026. Below is the full arithmetic — deposit to M-Pesa — not just the rates.
The two taxes you actually pay
1. Excise duty — 5% of every deposit. When you top up your betting account, 5% is taken as excise duty before the money reaches your balance. Since 1 July 2026 this is charged on the amount deposited, so it comes off the moment you fund your account — deposit KES 1,000 and KES 950 lands in your balance. This is the single most misunderstood charge in Kenyan betting: the shortfall is the tax, not the operator shaving your deposit.
2. Withholding tax — 20% of your winnings. If your bet wins, 20% of the winnings(the amount above your stake) is withheld by the operator at payout and remitted to the KRA. Your returned stake isn't taxed again, and you never file anything yourself: it's deducted at source before the money reaches your M-Pesa.
Worked example: from KES 1,000 to your M-Pesa
Every competitor publishes the rates. Here is the arithmetic nobody publishes — a KES 1,000 deposit placed on a single bet at odds of 2.00 that wins:
| You deposit | KES 1,000 |
| − Excise duty (5% of deposit) | −KES 50 |
| = Balance you bet with | KES 950 |
| Bet wins at odds 2.00 → gross return | KES 1,900 |
| Winnings (above your KES 950 stake) | KES 950 |
| − Withholding tax (20% of winnings) | −KES 190 |
| Lands in your M-Pesa | KES 1,710 |
So a KES 1,000 deposit that wins at 2.00 returns KES 1,710 after both taxes, and typically within about 6 min at the fastest operator (currently Betika). You can see how much of that gap is payout speed versus tax on our fastest-payout ranking.
When each tax is taken
The excise duty is taken on the way in, at deposit — which is why your balance is smaller than the amount you sent. The withholding tax is taken on the way out, from your winnings at payout. If you deposit and lose, you've still paid the 5% excise; you only ever pay the 20% on money you actually win. Neither is something you calculate or file — licensed operators handle both and remit to the KRA.
What changed on 1 July 2026
The Finance Act 2026 reinstated the 20% withholding tax on winnings, which had been repealed the year before, and it charges the 5% excise on the amount you deposit rather than at bet placement. Kenya's betting taxation has moved repeatedly through Finance Bill cycles, so treat any figure you read elsewhere with caution — a lot of published guidance is a cycle out of date. We re-check this against the KRA and update the checked date above.
Related: fastest-paying sites · how to withdraw · Kenya's new regulator · licence register
Betting tax in Kenya — FAQ
How much tax do I pay on betting in Kenya?
Two taxes hit you directly: a 5% excise duty on every amount you deposit, and a 20% withholding tax on your winnings (the amount above your stake). Both are deducted automatically — you don't file anything yourself.
Is betting tax deducted automatically, or do I file it?
Automatically. The 5% excise is taken when you deposit, and the 20% withholding tax is deducted by the operator from your winnings before payout and remitted to the Kenya Revenue Authority. As a player you file nothing.
Do I pay tax if I lose my bet?
You still pay the 5% excise, because it is charged on your deposit regardless of whether you win or lose. The 20% withholding tax only applies if you win, and only on the winnings — not on your returned stake.
Is the 20% tax on my whole payout or just the profit?
Only on the winnings — the amount above your stake. If you stake KES 950 and the bet returns KES 1,900, the taxable winnings are KES 950, and 20% (KES 190) is withheld. Your stake is not taxed again at payout.
Did betting tax change in Kenya in 2026?
Yes. The Finance Act 2026, effective 1 July 2026, reinstated the 20% withholding tax on winnings (which had been repealed in 2025) and charges the 5% excise on the amount deposited. This page reflects the position after that change.
What is the 15% betting tax I've read about?
That is a tax on the operator's revenue, not a deduction from your bet. Betting, gaming and lottery revenue is taxed at 15%, paid by the operator to KRA. It can affect the odds and margins you're offered, but it isn't taken directly from your deposit or winnings — the 5% excise and 20% withholding tax are the ones you pay directly.
Source: Kenya Revenue Authority, Betting, Gaming and Lottery Tax, read alongside the Finance Act 2026 (effective 1 July 2026). This page is general information and not tax advice; rates can change at any Finance Bill cycle. Gambling is for adults 18+ — see our responsible gambling page.