Tax on betting winnings and withdrawals
Income Tax Act; Excise Duty Act; Kenya Revenue Authority · sources read 5 Oct 2026
Yes. When you withdraw money from your betting account, the licensed betting company must deduct 5% tax and pay it to KRA. Pay-outs from lotteries and prize competitions are taxed at 20%.
- Deadline
- The company must pay the tax to KRA within 5 working days of deducting it
- Where
- Deducted automatically by the licensed betting, lottery or prize competition operator
Steps
- When it pays you, the betting company deducts the tax and must send it to KRA within five working days.
- You are entitled to a certificate from the company showing the amount paid to you and the tax deducted. Ask for it if you need proof.
Watch out
- Separately, betting companies pay 5% excise duty on money deposited for betting. This applies to the amount you put in, not what you withdraw.
- The 20% rate is for winnings, which the law defines as pay-outs from a lottery or prize competition. Money you withdraw from a betting account is taxed at 5%.
- The 5% tax on betting withdrawals goes into the Sports, Arts and Social Development Fund.
Who this covers
- Players who withdraw money from an account with a betting or gaming company licensed under the Gambling Control Act, 2025
- Winners of a lottery or prize competition run by a licensed operator
Official sources (5)
- Income Tax Act (Cap. 470), legislation as at 1 July 2026 kra.go.ke · read 2 Oct 2026
- Finance Act, 2026 (Act No. 19 of 2026), Kenya Gazette Supplement No. 157 kra.go.ke · read 2 Oct 2026
- Excise Duty Act (Cap. 472), legislation as at 1 July 2025 kra.go.ke · read 2 Oct 2026
- Income Tax Act (Cap. 470) new.kenyalaw.org · read 5 Oct 2026
- iTax portal itax.kra.go.ke · read 2 Oct 2026