KRA reaps big from betting firms amid technology-led enforcement measures
By Noel Wandera, August 6, 2025Kenya Revenue Authority (KRA) is reaping the dividends of digitisation and sharper compliance tools, with betting-related revenues posting a significant surge in the 2024/2025 financial year.
The taxman collected a record Ksh13.2 billion in excise duty on betting services, a 24.9 per cent year-on-year rise that beat its Ksh11.3 billion target by over Ksh1.9 billion.
Betting Tax receipts also rose by 22 per cent to Ksh5.7 billion, edging past projections and reinforcing the sector’s fiscal potential.
While increased consumer betting activity played a role, the uptick reflects a tightening grip on an industry that has long eluded full regulatory oversight.
KRA attributed the performance to intensified digitisation.
“Taxation at Source initiatives, including the system integration with betting firms and real-time transaction monitoring,” were credited with improving visibility and sealing revenue leakages.
The move marks a significant advance in KRA’s attempts to bring high-volume, cash-rich sectors under firmer scrutiny.
At the same time, the tax agency is making notable efforts to lower the entry barriers for compliance.
A key change announced on August 4, 2025, allows individuals to access the iTax platform using their national identity card (ID) numbers rather than Personal Identification Numbers (PINs).
The switch follows user feedback indicating that ID numbers are easier to recall and are used more frequently in daily life.
“The decision to implement this option was driven by feedback from taxpayers. This development comes as part of broader reforms aimed at modernising tax administration and building a system that puts the taxpayer at the centre,” the authority indicated in a statement.
By removing friction in digital engagement, particularly for casual or intermittent users, the tax agency aims to improve voluntary compliance, especially in fast-growing sectors like gaming and digital entertainment.
This approach appears to be paying off.
Despite a slowdown in gross domestic product (GDP) to 4.7 per cent in 2024 from 5.7 per cent the previous year, KRA’s total revenue collection rose 6.8 per cent to Ksh2.6 trillion.
That performance underlined the resilience of Kenya’s tax system amid economic headwinds, largely bolstered by technology-led enforcement and system improvements.
KRA has indicated that it will continue refining its tools based on user experience.