The Kenyan Cabinet Secretary for National Treasury and Economic Planning, Prof. Njuguna Ndung’u, has proposed significant amendments aimed at increasing the tax rates on betting and gaming services.
These revisions are part of the broader fiscal strategy for 2024/25, designed to boost revenue collection in alignment with the Vision 2030 economic blueprint and the Bottom-Up Economic Transformation Agenda (BETA).
The proposed tax changes are intended to ensure financial sustainability and economic recovery while addressing the challenges associated with the betting sector.
The proposal suggests reclassifying betting, gaming, and lottery services under taxable goods and services, ensuring stricter oversight and revenue maximization. Industry experts predict that this adjustment could lead to a higher tax burden for operators, with potential increases surpassing the current excise duty rate of 7.5% applied to betting stakes.
The additional revenue generated would support essential programs, including public health, education, and initiatives aimed at mitigating gambling-related harms.
This move follows Kenya’s commitment to harmonize its tax systems and increase compliance across all sectors, as highlighted in recent public notices. A critical aspect of this strategy is encouraging transparency and efficiency in tax administration, particularly within the rapidly growing betting industry.
As consultations on these proposals continue, stakeholders await the final version of the Finance Bill, 2024. If enacted, these measures could redefine the gaming landscape in Kenya, emphasizing economic accountability and social responsibility.
