The Kenya Revenue Authority (KRA) has revealed several challenges in taxing betting companies in Kenya. Officials from the KRA informed the Departmental Committee on Finance and National Planning that the Authority is facing difficulties in taxing certain betting firms.
The Committee, chaired by Molo lawmaker Kuria Kimani, convened to discuss key issues, including revenue performance, budget implementation, and the application of tax laws, along with challenges encountered in the 2024/25 Financial Year.
The officials stated that the challenges include legal disputes, enforcement difficulties arising from the sector’s complexity, tax evasion, and the intricacies of tracking and taxing online betting and gaming platforms.
To tackle these issues and enhance enforcement, the Authority urged the Committee to consider refining tax laws to close revenue loopholes and ensure all sector players meet their tax obligations.
KRA outlined its strategies for prevention and compliance assurance in response to the Committee’s inquiry regarding tax evasion.
These measures include digital monitoring, real-time tax remittances, enforcement actions, collaboration with third-party data, and public awareness campaigns.
Furthermore, the Authority proposed several recommendations to further strengthen tax administration.
These include increasing collaboration with Mobile Network Operators, investing in technology, implementing comprehensive tax returns, enacting legal reforms, enhancing multi-agency collaboration, and offering tax incentives for voluntary disclosures.
Betting Firms Taxes and Revenue
During the meeting, KRA officials detailed the applicable taxes for betting and gaming companies, including excise duty, withholding income tax, betting and gaming tax, and corporation income tax.
Besides, the Committee also received clarification that the Aviator game is classified as a digital game of chance and is taxed under the same regulations as other betting and gaming activities.
Regarding revenue performance, the Authority provided a detailed breakdown of revenue collected from betting and gaming tax heads for the 2023/24 and 2024/25 fiscal years.
This data indicated a 15% growth in total revenue collection for 2024/2025 (up to March 2025) compared to the previous financial year.
Also Read: KRA Issues Directive to Betting Firms Over BCLB License Renewal
KRA License Reminder to Gambling Operators
The meeting followed KRA reminding all licensed betting and gaming firms that the current operating licenses for the financial year 2024/2025, issued by the Betting Control & Licensing Board (BCLB) under the Betting, Lotteries and Gaming Act (BL&G Act) Cap. 131, are due to expire on June 30, 2025, as per Section 9 of the BL&G Act.
In a statement on April 29, KRA stated that its clearance is a mandatory requirement for the BCLB to renew licenses.
“In this regard, all betting and gaming operators are encouraged to update their tax matters with KRA to avoid any inconveniences,” KRA said.
Documents Needed
To facilitate the clearance process and validate tax compliance status, KRA stated it will confirm the following in accordance with the Tax Procedures Act:
1.Provision of a copy of the current CR12.
2.Updated Company iTax profile with the current Directors as per the CR12, along with the physical location of the company and its contact details.
3.Filed returns for all tax obligations and respective periods for both the Company and its Directors.
4.Settled tax liabilities for both the Company and its Directors.
5.Provision of all requested records for ongoing tax audits and/or compliance checks.
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6.Full access to systems for ongoing system audits as necessary for the audit.
7.Valid Tax Compliance Certificates (TCC) for both the company and its directors.
8.Integration with KRA systems as required for daily tax remittances and data transmission.
9.Integrated and approved Company’s paybill numbers.
“The relevant documents/records should be delivered to the KRA Offices at Ushuru Pension Plaza, Muthangari Drive, or to the official email addresses of the relationship managers,” KRA said.
BCLB also ordered the immediate suspension of all gambling advertisements and testimonials across all media platforms for thirty days, effective April 29, 2025.
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