The move by Kenya Revenue Authority to integrate betting firms directly into its systems to aid in real time tax collections has increased the sector’s revenue by 26 per cent toSh24.2 billion.
In a statement KRA said the efforts saw the Authority rake in enhanced revenue collection from betting and gaming companies in Kenya during the 2023-24 financial year.
This is after KRA registered a double-digit growth rate of 26.2 per cent in revenue collection from gambling activities to Sh24.2 billion during the 2023-2024 Financial Year.
This was an increase from Sh19.2 billion earned a year earlier.
The betting and gaming revenue comprised 15 per cent betting tax charged on revenue generated from betting, a 15 per cent turnover tax charged on all gross earnings, 20 percent excise duty charged on amounts staked in betting activities, and a further 20 per cent withholding tax charged on winnings made on betting, lotteries, gaming and prize competitions.
The system integration gave KRA real-time access to 111 companies in the gaming and betting sector that have been on-boarded on the Authority’s Tax System, thereby streaming revenue collection from the sector.
The growth in revenue from betting taxes highlights KRA’s commitment to leveraging technology and data analytics to enhance tax collection processes. This is part of the Authority’s broader strategy to expand the tax base and improve overall compliance.
The taxman’s data shows that overall, KRA recorded a total revenue collection of Sh2.407 trillion for the Financial Year 2023-2024, compared to Sh2.166 trillion in the previous financial year.
This marked an 11.1 percent growth from the previous year.
“This achievement underscores KRA’s commitment to enhancing voluntary compliance as well as ensuring a fair and efficient tax system,” KRA said in a statement.