NAIROBI, 26 July 2024 – The Kenya Revenue Authority (KRA) has reported a substantial increase in revenue collection from betting and gaming activities for the 2023/24 financial year, thanks to the integration of company revenue platforms into its tax system. KRA registered a double-digit growth rate of 26.2 percent in revenue from gambling activities, reaching KES 24.2 billion, up from KES 19.2 billion the previous year.
This significant growth was fueled by the comprehensive taxation framework in place, which includes a 15 percent betting tax on revenue generated from betting, a 15 percent turnover tax on all gross earnings, a 20 percent excise duty on amounts staked, and a 20 percent withholding tax on winnings from betting, lotteries, gaming, and prize competitions.
The integration of these systems has provided KRA with real-time access to 111 companies in the gaming and betting sector, streamlining the revenue collection process. This move reflects KRA’s commitment to leveraging technology and data analytics to enhance tax collection and expand the tax base.
Overall, KRA recorded a total revenue collection of KES 2.407 trillion for the 2023/2024 financial year, compared to KES 2.166 trillion in the previous year, marking an 11.1 percent growth. This achievement underscores KRA’s dedication to promoting voluntary compliance and ensuring a fair and efficient tax system.
KRA’s efforts highlight the potential of technological integration in improving tax collection processes and enhancing overall compliance in the sector, setting a benchmark for future initiatives.