Betting tax in Kenya: what the 5% and 20% take from a KSh slip

Excise duty of 5% now applies to every shilling you deposit for betting. KRA’s summary of the Finance Act 2026 lists “betting (including on horse racing) and gaming deposits” with a 5% charge on the amount deposited, effective 1 July 2026.

The duty is charged at the moment money goes in, whether you pay through the M-Pesa paybill, an STK prompt or Airtel Money. A win or a loss afterwards changes nothing about it. KRA’s guidance also tells betting and gaming operators to review how their systems treat deposits and to account for the excise correctly.

The duty grows with the number of shillings you move in, so ten top-ups of KSh 200 cost the same KSh 100 as one deposit of KSh 2,000. Casino deposits fall under the same line, since KRA names gaming deposits alongside betting.

betPawa’s, Kwikbet’s and SportyBet’s terms also show a 5% charge on withdrawals. KRA’s Finance Act 2026 summary attaches the excise to the amount deposited.

Withholding tax on winnings is 20%, the larger part of betting tax in Kenya, and the bookmaker deducts it before the money reaches your account. KRA’s withholding tax table sets 20% for winnings from betting, gaming, prize competitions and gambling, at the same rate for residents and non-residents.

The Income Tax Act, as amended by the Finance Act 2023, defines winnings as the payout excluding the amount staked.

SportPesa applies that rule on its How to Play page: the 20% is taken from net winnings, meaning the possible win less your stake. The betslip shows the result as the possible payout.

The tax takes a smaller share of a short-odds payout, because it only touches the profit. When you weigh up prices between bookmakers, compare the possible payout on the betslip after the 20% cut, since the quoted odds alone overstate what you take home.

The bookmaker pays withholding tax to KRA, out of your winnings, before it credits the balance to your account. KRA’s rules give the payer five working days to remit each deduction.

For a resident punter the deduction is a final tax. Your obligation ends there, and the win is left out of your annual income tax return on iTax.

A KSh 50,000 payout on a KSh 5,000 stake is a profit of KSh 45,000, so KSh 9,000 is withheld and KSh 41,000 reaches your account. If a winning slip pays out with nothing withheld, the bookmaker has skipped a deduction the law puts on the payer.

The regulator is involved too. Section 10 of the Gambling Control Act, 2025 tells the GRA to work with KRA on a monitoring system for tax compliance under the Act.

Jackpot prizes carry the same 20% withholding as any other betting win, because KRA’s table names winnings from betting without a size limit. The bigger the prize, the bigger the cut in shillings.

SportPesa’s Jackpot has 13 matches and starts at KSh 10,000,000. Its Mega Jackpot Pro has 17 matches and pays for 13, 14, 15, 16 or 17 correct out of 17, with starting prizes from KSh 10,000,000 for 13 correct to KSh 100,000,000 for all 17; a prize nobody wins rolls over and grows. Each entry costs KSh 99.

Worked the way SportPesa calculates withholding on bets, a KSh 100,000,000 starting prize for all 17 correct, won with one KSh 99 entry, loses KSh 19,999,980.20 to tax and pays KSh 80,000,019.80. A KSh 10,000,000 Jackpot win pays KSh 8,000,019.80 on the same basis.

Bonus payouts for 10, 11 or 12 correct picks are winnings as well. Prizes are shared equally when several punters hit the same tier. The SportPesa betting guide shows how to enter both jackpots by SMS, and the best betting sites in Kenya list compares where else jackpots run.