Parliament is raising the alarm over a significant decline in withholding tax collections from betting and gaming winnings, accusing the Kenya Revenue Authority (KRA) of lax enforcement and underperformance.
Members of the Parliamentary Committee on Finance and Planning grilled KRA top officials over what they termed as a worrying trend, despite the sector’s reported growth in tax remittances. Legislators noted that while taxes from gambling and betting activities increased to KSh19.6 billion between June 2024 and March 2025, the withholding tax on winnings remained disproportionately low.
According to the law, betting, gaming, and lottery firms are required to withhold 20% of all winnings and remit the amount directly to the taxman. However, MPs believe KRA is falling short in ensuring compliance, with some suggesting the tax agency could double its collections from the sector through more aggressive monitoring, technological innovation, and targeted enforcement campaigns.
“The KRA has the potential to collect much more if only it were more aggressive and innovative in tracking winnings and enforcing tax compliance in the betting industry,” one lawmaker said during the committee session.
In response, KRA officials acknowledged the concerns and assured the committee that efforts were underway to strengthen enforcement and close revenue leaks, particularly in the rapidly growing online gaming space.
The grilling comes amid increasing public concern over the social impact of betting and the need for greater accountability in the regulation and taxation of the sector. Parliament has pledged closer oversight of both the industry and the tax authority in a bid to boost revenue and ensure tax justice.