Millions of Kenyans who actively gamble are set for a setback as betting is about to become more expensive following the government’s latest move. Under the Gambling Control Act 2025, the Gambling Regulatory Authority of Kenya (GRA) is empowered to implement policies that include mandatory contributions to the Social Health Insurance Fund (SHIF) or pensions for every bet placed.
The new regulations, still in the drafting stage, aim to curb widespread gambling while encouraging a culture of savings and social security contributions, particularly among the youth, where gambling is most prevalent.
In the latest government intervention, gambling is positioned as both a source of revenue and a tool to encourage savings, while also curbing excessive betting among Kenya’s youth.
Gamblers to Pay Mandatory Contributions to SHIF
The new measure builds on existing levies, which include a 15% excise tax on every betting stake and a 20% withholding tax on each winning bet. With mandatory SHIF or pension deductions, every bet will become considerably more expensive for players.
The government expects the move to expand SHIF’s membership pool and increase contributions under the newly established scheme, with the aim of providing medical coverage for all Kenyans.
Also Read: SHA Issues Warning to Employers on Penalties for Late SHIF Payments
Legal Background
The Gambling Control Act, signed into law by President William Ruto on August 7, 2025, grants the Gambling Regulatory Authority the power to:
- Develop standards and norms for betting, lotteries, casinos, and other forms of gambling.
- Regulate and monitor gambling activities.
- Issue licenses for gambling operators.
- Implement policies requiring a savings component for SHIF or pensions in every bet.
- Maintain a register of all gambling machines, devices, and relevant data nationwide.
Other Sources Where Govt Collects Funds from its Medical Insurance Cover
Before the new betting deductions, SHIF relied on contributions from:
- Salaried Employees: 2.75% of gross monthly salary (minimum Kshs 300) deducted by employers.
- Informal Sector Households: Annual contributions of 2.75% of household income, assessed through means-testing.
The scheme also targets informal sector workers who are not salaried, encouraging them to make regular contributions and build a social safety net.
Government Appropriations: The national and county governments provide funds, appropriated by the National Assembly, to cover the contributions of indigent and vulnerable persons who cannot afford the payments themselves.
Also Read: SHA Appoints 23 New Assistant Directors
Other Provisions of the Gambling Control Act
- Operators must be a body corporate in which a minimum of 30% of shares are held by Kenyan citizens to qualify for a license.
- The Act imposes significant capital thresholds and requires security deposits (e.g., KSh 100 million for online gambling and national lotteries) to ensure financial stability and accountability.
- The Act introduces stiff penalties, including heavy fines and imprisonment, for non-compliance and illegal operations.
Follow our WhatsApp Channel and X Account for real-time news updates.
