KRA Clarifies Why Some Betting Firms Dodge Taxes

The Kenya Revenue Authority (KRA) KRA ) has highlighted multiple obstacles in taxing betting companies in Kenya. Representatives from the KRA told the Departmental Committee on Finance and National Planning that the Authority is encountering issues with taxing particular betting entities.

The committee, led by Molo legislator Kuria Kimani, gathered to address significant matters such as revenue generation, execution of the budget, and the enforcement of taxation regulations, alongside difficulties faced during the fiscal year 2024/25.

Officials indicated that the issues encompass legal disagreements, complexities in enforcement due to the sector’s nature, tax avoidance, as well as the complications involved in monitoring and taxing online gambling and betting sites.

To address these problems and improve enforcement, the Authority requested the Committee to explore revising tax legislation in order to plug revenue gaps and guarantee that all industry participants fulfill their tax responsibilities.

The KRA presented its plans for preventing and ensuring adherence to regulations as part of their reply to the Committee about tax avoidance issues.

The strategies encompass digital surveillance, immediate tax payments, enforcement initiatives, cooperation with external datasets, and public education drives.

Additionally, the Authority suggested multiple proposals aimed at enhancing the robustness of tax administration.

These include increasing collaboration with Mobile Network Operators, investing in technology, implementing comprehensive tax returns, enacting legal reforms, enhancing multi-agency collaboration, and offering tax incentives for voluntary disclosures.

Betting Firms Taxes and Revenue

In the gathering, representatives from KRA outlined the relevant taxes for betting and gaming firms, which encompass excise duty, withholding income tax, betting and gaming levy, as well as corporation income tax.

In addition, the Committee was informed that the Aviator game falls under the category of a digital gambling activity and is subject to taxation according to the same rules applied to various wagering and gaming operations.

Concerning income generation, the Authority offered a comprehensive analysis of revenues derived from betting and gaming taxes for both the 2023/24 and 2024/25 financial years.

These figures show a 15% increase in overall revenue collection for the period from 2024/2025 up until March 2025 when compared to the prior fiscal year.

Also Read: KRA Gives Instructions to Betting Companies Regarding BCLB License Renewal

Reminder for KRA Licensing for Gaming Operators

Following KRA’s reminder during the meeting, all licensed betting and gaming companies were informed that their current operational licenses for the fiscal year 2024/2025, granted by the Betting Control & Licensing Board (BCLB) according to the Betting, Lotteries and Gaming Act (BL&G Act) Cap. 131, will lapse on June 30, 2025, based on Section 9 of the BL&G Act.

On April 29, KRA announced that their approval is necessary for the BCLB to issue license renewals.

"In this light, all gambling and wagering entities are advised to revise their tax information with KRA to prevent any complications," stated KRA.

Documents Needed

In order to streamline the clearance process and verify the tax compliance status, KRA mentioned it would check the following as per the Tax Procedures Act:

1.Supplying an updated version of the CR12 document.

2. Updated the company's iTax profile to include the latest directors according to the CR12 document, alongside adding the business’s physical address and contact information.

3. Submitted tax filings for all duties and corresponding timeframes for both the Corporation and its Executives.

4.Resolved tax obligations for the Corporation as well as its Executives.

5.Supplying all required documents for active tax audits and/or compliance inspections.

Also Read: Top Corporation, Parent Entity of Betway Gambling Enterprise

6. Complete accessibility to systems for continuous system audits whenever required for the review process.

7. Valid Tax Compliance Certification (TCC) documents must be available for the corporation as well as all its directors.

8. Integration with KRA systems as needed for routine tax payments and data transfer.

9. Incorporated and sanctioned the organization's payment bill numbers.

KRA stated, "The pertinent documents or records must be submitted either to the KRA offices located at Ushuru Pension Plaza on Muthangari Drive, or to the official email addresses of the respective account managers."

The BCLB mandated an immediate halt to all gambling promotions and endorsements across various media channels for a period of thirty days, starting from April 29, 2025.

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