Kenyan Gamblers to Pay Ksh200 to KRA For Every ksh1,000 They Bet,Whether Win or Lose

Kenyans who gamble will pay 20 percent of their betting cash to the Kenya Revenue Authority. The National Treasury proposal  for the taxation of gamblers deposit for betting will also be equivalent to a fifth of the cash in the wallet regardless of whether a stake has been placed or not.

This proposal is meant to increase collection of taxes as well as discourage betting among Kenyans. This new proposal that has been made by the Treasury Cabinet Secretary Ukur Yatani will raise betting taxes from the current 7.5 percent.

Betting firms will be required to withhold and forward Sh. 200 out of every Sh. 1,000 wagered regardless of whether the punter wins or loses.

“The First Schedule to the Excise Duty Act, 2015 is amended … in Part II (on excisable services) by deleting the expression ‘seven-point five per cent’… and substituting therefor the expression ‘twenty per cent’,” Yatani said in the Finance Bill 2022.

The proposed 20 percent tax will apply from July 1 if passed by the MPs before the House breaks on June 9 ahead of the August elections.

Gamblers also pay a 20 percent tax on winnings that betting firms are required to withhold and remit to the taxman.

This means that if one wins Sh. 100,000, he or she will receive Sh. 80,000. KRA will take Sh. 20,000.

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