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Reforms Affecting Online Casinos and Sportsbooks in Kenya
Gambling has been on the receiving end of public disapproval for years now, being labelled as ‘sin’, ‘controversial’, and the like. That has been the inspiration the government needed to tighten its stranglehold on everyone involved in the industry, including the best online casinos available in Kenya.
| 📆 Year | 🧾 Kenyan Gambling Law Change |
|---|---|
| 2011 | The Betting Control and Licensing Board (BCLB) started began fulfilling its licensing and regulating duties. |
| Kenya’s Online Gambling Law in 2019 | Change to the Excise Duty Act introduced a 20% excise duty on all bets. |
| Kenya’s Online Gambling Law in 2020 | The 20% excise tax on all gambling wagers is rescinded. |
| Kenya’s Online Gambling Law in 2021 | The original 20% tax on all wagers is lowered to 7.5% |
| Kenya’s Online Gambling Law in 2022 | If passed by the Members of the National Assembly, a new 20% tax will come into force from July 1. |
It became something of practice to heavily tax both players and operators in an attempt to fund the annual budget. What has this led to is a story for another time; for now, let’s see how Kenya’s online gambling law has changed over the years:
Updates to the Online Gambling Laws in 2019
Maybe the draconian measures aren’t uncalled for after all. A 2018 study shows that the popularity of online gambling among Kenyan youth is increasing at an alarming rate, higher than in any other country in Sub-Saharan Africa. Arguably, that has led to an amendment to the Excise Duty Act in 2019. This is when the notorious 20 per cent excise tax was ushered in. This remains one of the most severe Kenyan gambling taxes to this day.
Updates to the Online Gambling Laws in 2020
The devastating 20% online gambling tax in Kenya in 2019 caused major turmoil among operators, some of which were forced to exit the market after being banned. However, in the name of buoying up cash-starved sports betting operators, a decision was made to cancel the levy on wagers.
Inspiring prowess and influence were demonstrated by Shade.co.ke – Kenyan manufacturers – who ultimately turned the tables and saved the industry. Not often can you see a development like that one in the gambling laws around the world.
Updates to the Online Gambling Laws in 2021
The high levy from 2020 struck a nerve with many. Still, soon after, President Uhuru Kenyatta gave the same people a reason to celebrate once again by signing the revised Finance 2021 Bill, which effectively lowered the levy to a tolerable 7.5%. The revision was made in the light of a last-minute decision of the Nairobi High Court to question the doubling of the originally planned 10% tax. And there you have it – another change to the online gambling laws in Kenya.
Update to the Online Gambling Laws in 2022
Kenyan Gambling taxes are in many ways like luck itself – they come and go when you least expect them. True to that statement, 2022 may very well be the year to re-introduce the 20% blanket levy on real money gambling bets. Things are still up in the air, but by the looks of it, the ambitious budget for 2022/2023 will be financed by raising excise taxes again. The good old manoeuvre will be effective starting July 1 if approved.
Tax on Winnings in Kenya
An amendment to The Tax Laws Act has set in motion a 20% tax on winnings in Kenya for everyone who gambles. This comes on top of the blanket 20% tax that was effective in 2019 and is expected to be signed into law once again in 2022. Business owners are not spared by the long hand of the law either. Gambling businesses are subject to a 15% levy, enshrined in the online gambling laws in Kenya. For all you online casino fans living in the country, let us explain some of the characteristics of the Witholding Tax (WHT) applied according to the Kenya Revenue Authority.
- 💰 Its subject are winnings, spoils, and profits, paid out as the result of a bet.
- ✅ Gross winnings are taxed
- 🎲 All sectors regulated by the Betting, Lotteries, and Gambling Act pay WHT
- 👮♀️ Non-compliance is punishable by law
FAQ
This rollercoaster of a ride called online gambling tax in Kenya did not scare away the loyal customers, and the operators determined to make their services available to Kenyans. There are, however, Kenyans who still fail to understand how much they are taxed, why, and by whom. We give additional answers in the next segment.
