The Kenya Revenue Authority (KRA) has pulled off a record-breaking revenue feat, raking in Ksh13.2 billion from the gambling industry in the 2024/2025 financial year.
While the rest of the economy struggled with sluggish growth and rising costs of living, betting operators became a cash fountain for the taxman, thanks to new surveillance-like systems quietly installed to monitor every bet and payout in real time.
Behind the celebration of increased collections lies a controversial shift—one where the State profits as millions of Kenyans gamble away their last coins in search of luck.
In a bold and calculated move, the Kenya Revenue Authority (KRA) has re-engineered how it collects taxes from betting firms, helping it surpass its targets and collect Ksh13.2 billion in the 2024/2025 financial year. This represents a 22 per cent jump from the previous year, fueled by a digital integration strategy that allows real-time monitoring of gambling transactions.
Betting companies, which once operated with little oversight, now find their systems plugged directly into KRA’s digital backend. Through this integration, every bet placed, every shilling won, and every payout made is automatically reported to the taxman. Gone are the days when firms could underreport earnings or delay filings—KRA is now watching every click, every second, and every coin.
KRA’s strategy, dubbed ‘taxation at source,’ eliminates loopholes and maximizes tax collection. It has turned gambling into a steady and highly dependable source of national revenue. But this success has also raised concern about the deeper societal and ethical implications of the State’s growing reliance on gambling taxes to fund public programs.
KRA’s commissioner praised the method, noting that “the integration of betting firms’ systems to KRA’s systems has enhanced compliance and transparency and facilitated effective collection.” Still, that compliance is being built on a foundation of economic desperation for millions of Kenyans.
Gambling tax windfall grows even as economy falters
While tax collection soared, the broader economy did not. Kenya’s GDP growth slowed to 4.7 per cent in 2024, down from 5.7 per cent the previous year. Yet, during this slowdown, Kenyans poured more money into betting platforms—highlighting a growing national addiction to gambling as a last resort for income.
The betting sector’s explosive contribution to the national purse has revealed an uncomfortable truth: in a country where jobs are scarce and inflation remains high, many citizens are literally gambling for survival. And in this bleak economic environment, the State has positioned itself to benefit from their risk.
That’s the paradox. For every jackpot winner splashed across social media, thousands more lose money they can’t afford to spare—and now, every loss is a gain for the government.
KRA’s own data makes it clear. From a target of Ksh5.495 billion in betting taxes, the agency collected Ksh5.7 billion—already exceeding the mark. And that figure does not even include other gambling-related taxes such as withholding tax on winnings or corporate tax from betting firms.
KRA doubles down on digital tax tools beyond gambling
Buoyed by the success of taxation at source in the gambling sector, KRA now plans to extend this real-time tax collection model to other industries. Officials have signaled their intention to install similar integrations in other high-risk sectors for revenue leakage, including digital services, imports, and financial technology platforms.
In August 2025, KRA is set to roll out two new systems—the Independent Review of Objections (IRO) and the Technical Review Unit (TRU)—to streamline disputes in customs and offer what it terms a “fair and transparent” appeals process. This comes amid mounting criticism over the agency’s aggressive digital surveillance methods and concerns about taxpayer rights.
While the systems may bring efficiency, critics warn they also risk concentrating too much power in the hands of KRA without adequate oversight. For example, there are questions about how much personal financial data betting firms are now forced to share and whether users fully understand how closely their transactions are being monitored.
Furthermore, analysts caution that leaning heavily on gambling revenue is not a sustainable long-term strategy for national development. It may pad short-term budget gaps, but it also incentivizes a growing betting culture that could have harmful social consequences.
