Millions of Gamblers Hit With New 'Betting Tax'—Find Out Why Your Stakes Are About to Shrink

Gamblers in Kenya will soon be forced to cede a portion of their betting stakes to the Social Health Insurance Fund (SHIF) and a pension kitty, following the enactment of the Gambling Control Act 2025.

The deduction will be implemented on top of a complex and steep taxation regime. 

Punters already face a 15 percent excise tax on their stakes and a 20 percent withholding tax on every winning bet, making the new levy an additional financial burden on their gambling activity.

The new law gives the recently formed Gambling Regulatory Authority of Kenya, which replaces the former Betting Control and Licensing Board (BCLB), the power to draft and implement the new savings policies. 

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A report by Business Daily indicates that the authority is currently in the process of formulating the specific regulations.

“The Authority (Gambling Regulatory Authority of Kenya) shall develop policies for placing of bets for betting, lotteries and gambling that include a savings component for social health insurance or social retirement benefit,” the Gambling Control Act 2025 says.

This policy will directly impact the minimum bet amount. While the current minimum stake on many platforms is Sh20, punters will now need to have more money in their betting accounts to cover both the bet and the new compulsory saving, as the Act stipulates the levy will be built into the stake.

“The minimum amount set under subsection (1) shall be inclusive of such a saving component for the player as shall be determined by the Authority in consultation with the Cabinet Secretary.”

The government's move is a clear strategy to widen the contribution base for the new Social Health Insurance Fund (SHIF). With previous estimates showing more than 12 million gamblers in the country, the State is targeting this massive pool to fund its universal healthcare ambitions.

All Kenyans are legally required to enrol with SHIF and contribute 2.75 percent of their pay. This new betting levy provides a mechanism to capture contributions from the millions of gamblers, many of whom are in the informal sector.

However, the new Act does not yet clarify what will happen to gamblers who are already contributing to SHIF, either as salaried workers or under the household category. 

With punters placing bets worth over Sh150 billion every year, this new mandatory deduction represents a potential windfall for the government. These contributions will be funnelled to a health insurer reportedly grappling with Sh76 billion in unpaid bills. Simultaneously, the move is being positioned as a way to enforce a savings culture, especially among the youth.

The State has progressively increased levies on the sector to discourage the gambling craze, which has become an addiction for many seeking quick cash. However, these efforts have had limited success.

According to a 2024 FinAccess Household Survey, an estimated 40.4 percent of Kenyans aged 18 to 45 are actively betting. 

The joint report by the Central Bank of Kenya (CBK) and the Kenya National Bureau of Statistics (KNBS) also revealed that gamblers spent an average of Sh1,825 on betting per month last year, with most viewing it as a source of income.

Kenya has the largest number of youthful gamblers on the continent at 76 percent, placing it ahead of larger economies like Nigeria and South Africa.