BUSINESS

KRA Collects Ksh 13.2 Billion From Gambling Sector

SABRINA BTAug 6, 20251 Mins read1.2k

A section of KRA office. PHOTO/@KRACorporate/X

The Kenya Revenue Authority (KRA) has reported a rise in excise duty collections from betting services, raking in Ksh 13.2 billion during the 2024/2025 financial year.

This figure exceeded the projected target of Ksh 11.2 billion, representing an impressive performance rate of 117.2 per cent.

According to KRA’s annual report released on Tuesday, August 5, the growth in excise duty marks a notable improvement from the Ksh 10.6 billion collected in the previous financial year.

“This represents a 117.2 per cent performance rate, up from Ksh 10.6 billion collected in the previous financial year,” Rispah Simiyu, Commissioner for Large and Medium Taxpayers, stated.

The report also highlighted that Betting Tax exceeded expectations, with the authority collecting Ksh 5.7 billion against a projection of Ksh 5.5 billion. This represents a performance rate of 103.7 per cent and a 22.0 per cent growth compared to the previous year.

The improved revenue performance has been largely credited to KRA’s strategic “Taxation at Source” initiatives. These include the integration of betting firms’ systems with KRA’s digital infrastructure, which has enabled real-time monitoring of transactions.

“This has enhanced compliance and transparency and facilitated effective collection,” the report read.

Despite economic headwinds, Kenya’s tax agency has managed to maintain positive momentum in its revenue collection efforts. The 2025 Economic Survey revealed that the country’s economy grew by 4.7 per cent in 2024, a decline from 5.7 per cent in 2023, mainly due to global slowdowns and reduced local consumption and credit access.

Nonetheless, KRA’s total revenue collection for the 2024/2025 financial year stood at Ksh 2.5 trillion, marking a 6.8 per cent increase.

“This growth demonstrates resilience and the importance of strategic targeting in mobilizing revenue from emerging sectors,” Simiyu said.

KRA reiterated its focus on expanding the tax base through technology and strategic partnerships to ensure fairness, efficiency, and transparency in tax administration.

“We remain committed to expanding the tax base through Taxation at Source initiatives to promote fairness, efficiency, and transparency in tax administration,” Simiyu added.

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