Taxing the rail, not the bet
Kenya used to charge 15% excise duty at the moment a wager was placed. That works only for operators the state can see. The tax now attaches to the transfer instead: 5% when money moves from a mobile wallet into a betting account, and 5% again on the way out.
The shift was designed to capture offshore and virtual operators, and it works because in Kenya betting runs on M-Pesa. Fund a wallet through a paybill and the operator deducts 5% for the revenue authority before the money lands. An operator outside Kenyan jurisdiction can ignore a licensing regime; it cannot ignore the payment rail its customers use. That is a genuinely different answer to a problem every regulator on this site has.
A new act and a new authority
The Gambling Control Act 2025 replaced the Betting, Lotteries and Gaming Act, tightening compliance and consumer protection and unifying oversight. The Betting Control and Licensing Board was due to hand its functions to a Gambling Regulatory Authority by February 2026.
Identity checking is strict for a market this size: an account needs a national ID and a live selfie, and operators are penalised for under-18 betting rather than the player being. Both physical and online casinos require a licence, though the market is overwhelmingly mobile rather than floor-based, which is why the payment rail is where the leverage sits.
Frequently Asked Questions
- How is betting taxed in Kenya?
- 5% excise on deposits into a betting account and 5% on withdrawals, charged at the mobile money transfer rather than on the wager.
- Why did Kenya move the tax off the bet?
- To reach offshore and virtual operators. An operator outside Kenyan jurisdiction can ignore licensing, but not the payment rail its customers use.
- What is the legal age?
- 18, verified with a national ID and a live selfie.
Legal age, regulator and the tax treatment of player winnings on this page were checked against the regulator's own material or a reputable legal summary in August 2026. Gambling law moves; confirm anything consequential with the regulator before relying on it. Where sources disagreed, this site leaves the figure out rather than guessing.