Excise duty on betting stakes in Kenya: what the KRA notice says
The 2019 and 2020 KRA notices say excise duty on betting is chargeable on all stakes placed by punters on bookmakers at 20%. A later KRA notice, dated 12 July 2025, records that from 1 July 2025 betting duty is 5% of the amount deposited into a customer's betting wallet, not of the stake.
The short answer
People searching for "excise duty on betting stakes" are usually looking at the notice Kenya Revenue Authority (KRA) published after the Finance Act, 2019. That notice is real and still on the KRA website, but it records a rule that KRA's own later notice describes as the previous one. For the amounts a player sees today, read the deposit-based rule in the 2025 notice, and for the rate on the day you read this, check kra.go.ke.
This page reports what each notice says and leaves out any interpretation the notices do not support. The tax on money deposited and withdrawn is covered in more depth in the guide on how tax applies to betting deposits and withdrawals.
What the KRA notices say, in order
| Notice and date | What it says about betting | Base of the duty |
|---|---|---|
| Excise Duty on Betting, 26 November 2019 | Following the Finance Act 2019, excise duty on betting is chargeable on all stakes placed by punters on bookmakers at the rate of 20%. | The stake |
| Excise Duty on Stakes placed on Bookmakers, 15 January 2020 | Repeats the 20% rate on all stakes placed by punters on bookmakers, and says KRA, with other agencies, will suspend pay bill numbers and online operations of non-compliant bookmakers. | The stake |
| Adjustment of Excise Duty Rates under the Finance Act, 2025, 12 July 2025 | Lists the previous rate for betting other than horse racing as 15% of the amount wagered or staked, and the new rate as 5% on the amount deposited into a customer's betting wallet, effective 1 July 2025. | The deposit into the betting wallet |
Read together, the three notices show two changes in the rate and one change in the base. The rate went from 20% in the 2019 and 2020 notices to 15% in the previous-rate column of the 2025 notice, and then to 5%. The base moved from the stake to the deposit.
What "stake" and "deposit" mean for the duty
A stake is the amount a punter places on one bet. A deposit is the amount transferred into the betting wallet, which is the balance the stakes are later taken from. One deposit can fund many stakes, and some deposits are never staked at all.
That difference matters because the duty follows the base the notice names. Under the stake rule the charge follows each bet. Under the deposit rule it follows each top-up, as described in the guide on how a mobile-money deposit reaches a player account.
Illustrative example
The figures below are arithmetic on round numbers using only the rates and bases named in the notices above. They ignore wallet charges, which the mobile-money provider sets, and they do not show how any operator presents the deduction.
- Stake-based rule at 20%
A punter places a stake of KES 100. Duty at 20% of the stake is 100 x 0.20 = KES 20.
- Deposit-based rule at 5%
A punter deposits KES 1,000 into a betting wallet. Duty at 5% of the deposit is 1,000 x 0.05 = KES 50, whatever number of bets the balance later funds.
- Why the two cannot be compared directly
The first figure is measured on one stake and the second on one deposit. A rule can only be compared for a person if you know how many stakes a deposit funds, which varies by person and is not stated in any notice.
How to read a KRA notice without being misled
- Find the date first
A notice records the position on its date. The 2019 notice names the Finance Act, 2019, and a Finance Act can be amended by a later one.
- Look for a later notice on the same tax
The KRA public notices page lists notices by date. A notice on rate adjustments, such as the one of 12 July 2025, can replace the rate in an earlier one.
- Check the base, not only the percentage
The same percentage means different amounts on a stake and on a deposit.
- Separate the taxes
Excise duty on betting is one tax. Withholding tax on withdrawals and the tax on advertising fees are other charges with their own rules.
- Compare with what your own account shows
Your operator's terms and account history, covered in the guide on M-Pesa limits for betting deposits and withdrawals, show what was credited. Ask the operator's customer care for a breakdown if a deduction is unclear.
Who pays it over to KRA
The notice of 12 July 2025 says suppliers must charge the revised rates and remit the tax within twenty-four hours for betting and gaming transactions. The 2020 notice is addressed to punters, bookmakers and stakeholders and warns of suspension of pay bill numbers and online operations for non-compliance.
The notices do not tell a player how the operator accounts for the duty in its own pricing. The duty is a charge on the betting service as a supply, and the operator remits it.
What these notices do not settle
The Gambling Control Act, 2025, section 121(6)(a), says the provisions of the repealed Act on betting tax, gaming tax, lottery tax and prize competition tax continue in force until new provisions are enacted. That is a separate tax from excise duty, and this page does not describe it.
Nothing here is tax advice. For your own position, ask KRA or a qualified adviser. Gambling is addictive: play responsibly, and see the page on responsible gambling for help lines and self-exclusion.
Questions and answers
Is the 20% in the old KRA notice still the rate?
Not according to KRA's own later notice. The notice on adjustment of excise duty rates under the Finance Act, 2025, dated 12 July 2025, lists the previous betting rate as 15% of the amount wagered or staked and the new rate as 5% on the amount deposited into a customer's betting wallet, effective 1 July 2025. Rates change by Finance Act, so check kra.go.ke for the current position.
Is excise duty charged on each bet I place?
Under the stake-based rule described in the 2019 and 2020 notices, yes: the duty was chargeable on stakes. Under the deposit-based rule in the 2025 notice, the base is the amount deposited into the betting wallet, so placing several bets with the same balance does not create a new charge on each stake.
Who remits the duty to KRA?
The supplier, meaning the operator. The 2025 KRA notice says suppliers must charge the revised rates and remit the tax within twenty-four hours for betting and gaming transactions.
Does the same notice cover tax on withdrawals or winnings?
No. The notices read for this page deal with excise duty. Withholding tax on withdrawals is a different tax under a different statute and is explained in a separate guide on this site.
Does excise duty apply to horse racing?
The KRA table of 12 July 2025 labels the betting line as betting other than horse racing, so horse racing is treated separately there. The notice text read for this page does not give a separate horse racing rate, so ask KRA if it matters for you.
Where do I check the rate today?
On the public notices page of the Kenya Revenue Authority at kra.go.ke, and in the current consolidated Excise Duty Act. A Finance Act can change the rate again, so a dated notice is only a record of the position on its date.
Sources
- Kenya Revenue Authority, public notice: Excise Duty on Betting (26 November 2019), accessed 2026-10-11
- Kenya Revenue Authority, public notice: Excise Duty on Stakes placed on Bookmakers (15 January 2020), accessed 2026-10-11
- Kenya Revenue Authority, public notice: Adjustment of Excise Duty Rates for Excisable Goods and Services by the Finance Act, 2025 (12 July 2025), accessed 2026-10-11
- Kenya Revenue Authority, public notices index, accessed 2026-10-11
- Gambling Control Act, 2025 (No. 14 of 2025), s.121(6)(a), accessed 2026-10-11