The Kenya Revenue Authority (KRA) collected a record-breaking Ksh13.2 billion from betting firms thanks to a smart tweak of how they apply taxes in the gambling industry. During the 2024/2025 financial year, KRA revealed it surpassed its betting tax collection targets, raking in Ksh5.7 billion against a target of Ksh5.495 billion.
This marked a 22 per cent growth from the previous year. According to the taxman, the spike was largely because of its tech-driven approach in revenue collection, particularly among betting firms.
Recently, KRA integrated betting companies' systems directly with its own, which allowed for real-time tracking of every bet and payout. Previously, betting firms had to file their annual revenues with the KRA - a method which would lead to underreporting and potential tax evasion in the lucrative betting industry. An image of an person on a gambling site Kenyans.co.ke However, since the adoption of the 'taxation at source' strategy, the KRA is able to tax betting companies in real time by monitoring every transaction between the firms and their customers. "The performance is attributed to KRA's Taxation at Source initiatives, specifically, the integration of betting firms' systems to KRA's systems, enabling real-time monitoring of transactions.
This has enhanced compliance and transparency and facilitated effective collection," KRA revealed.
