The Kenya Revenue Authority (KRA) has reported a sharp increase in tax collections from the betting sector, driven by system integration and better oversight. In the 2024/2025 financial year, betting excise duty exceeded expectations by a wide margin.

“The Kenya Revenue Authority (KRA) has recorded an outstanding performance of 117.2 per cent in Excise duty on betting services during the Financial Year (FY) 2024/2025, surpassing the set target of Ksh11.288 billion,” KRA said in a statement released on 5 August 2025.

This means KRA collected far more than it had aimed for, showing a strong improvement in betting tax revenue. The authority’s improved monitoring systems have played a big role in ensuring firms pay what they owe.

“Excise duty from betting services grew to Ksh13.233 billion in the FY 2024/2025 from Ksh10.598 billion collected in the last financial year.”

The increase of more than Ksh2.6 billion marks a significant year-on-year jump, showing just how rapidly this sector is expanding, or how much better enforcement has become.

“During the period under review, Betting Tax surpassed the set target after collecting Kshs5.70 billion against a target of Ksh5.495 billion. This translates to a performance rate of 103.7 per cent and a growth of 22.0 per cent.”

KRA strengthens digital taxation framework

Not only did excise duty rise, but betting tax also beat targets. This steady growth shows the government is successfully pulling more revenue from an industry that was once hard to regulate.

“The performance is attributed to KRA’s Taxation at Source initiatives specifically, 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’s digital approach has helped it plug loopholes. By monitoring betting transactions as they happen, the agency can collect taxes more accurately and reduce evasion.

The report comes at a time when Kenya’s economy is under pressure. The 2025 Economic Survey shows that the country’s growth slowed to 4.7 per cent in 2024, compared to 5.7 per cent the year before.

Still, overall tax collections remained strong.

“Despite the pressures, KRA’s total revenue collection for the FY 2024/2025 stood at Kshs2.571 trillion reflecting a 6.8 per cent growth, demonstrating resilience and the importance of strategic targeting in mobilising revenue from emerging sectors.”

“KRA reiterates its commitment to expanding the tax base through Taxation at Source initiatives to promote fairness, efficiency and transparency in tax administration.”