A licensed operator now charges 5% on every amount a punter pays into a betting account. It sits beside the 5% withholding tax on payouts, so a shilling is taxed on the way in and on the way out.
What the Finance Act 2026 changed
Before July 2026 the excise in Kenya was charged on the stake, inside the price the bookmaker offered. The Finance Act 2026 moved it to the deposit and set the rate at 5%, collected by the licensed operator at the moment the M-Pesa prompt is approved.
The Kenya Revenue Authority's note on the Act lists the change among the measures that took effect on 1 July.
The withholding tax on winnings stayed where the Finance Act 2025 put it: 5% of any amount the operator pays into your account. Lottery and prize-competition winnings carry a 20% rate under the 2026 definition, which leaves a football multibet at 5%.
The rules the GRA enforces alongside the tax, on conduct and advertising, were gazetted as Legal Notices 111 to 114 on 29 June 2026. They took effect the same day as the excise, and the licence round that followed ended the old BCLB licences on 24 September 2026.
The shilling arithmetic for the excise on betting deposits
A KSh 1,000 deposit now costs KSh 1,050 in total, or credits KSh 950 of betting money, depending on how the operator presents the charge in its cashier. Either way the excise takes KSh 50 before the first slip is placed.
At the other end a KSh 4,000 payout gives up KSh 200 in withholding and lands as KSh 3,800 in M-Pesa. A punter who deposits KSh 1,000 and withdraws KSh 4,000 has paid KSh 250 in tax on the round trip, a quarter of the original deposit.
Work the two charges into the price. A 2.00 at a licensed brand pays like 1.90 after withholding, and the deposit cost sits on top. Compare that with the weekly board before choosing between a licensed and an offshore brand on the same match.
What it means for welcome offers
A match bonus is calculated on the deposit as the operator records it. Where the operator presents a KSh 1,000 deposit as KSh 950 credited, a 100% match pays KSh 950. The rollover is then calculated on that smaller figure. Where the operator charges KSh 1,050 and credits KSh 1,000, the match pays KSh 1,000.
The minimum deposits that open the offers in the Kenya ranking, KSh 112 at 1xBet, KSh 120 at BetWinner, KSh 130 at Melbet, KSh 150 at 22Bet and 888Starz, are unchanged by the Act. A punter who deposits exactly the floor should check that the credited amount, after excise, still reaches it.
Mozzartbet's offer, which releases a 50% free bet after a single qualifying slip, is the cheapest to claim under the new rule because it needs one deposit of KSh 100 rather than turnover across many.
Who collects it and where to check
The licensed operator collects both charges and remits them to the KRA. The deduction shows in the cashier at the moment of the deposit and the withdrawal. The GRA's licensed operators list for the 2025/26 period names the licensees. Among the ranked brands those are 22Bet, Melbet, 1xBet, 888Starz and Mozzartbet.
An offshore brand collects neither charge and offers no complaint route at the GRA. The Kenya home page prints the licence beside each brand and works the tax into the ranking. The figures there were corrected on 1 July 2026, and the GRA list is linked in the sources.
Questions about the excise
The two questions punters have asked most since July are answered below. Both answers assume a GRA licensee, because the excise and the withholding are collected only there, and an offshore cashier shows neither line.
Does the excise apply at offshore bookmakers?
No. The excise is collected by the licensed operator at the deposit, and an offshore brand without a GRA licence collects neither the excise nor the 5% withholding. It also offers no GRA complaint route, which is the trade a punter makes.
Is the excise charged again on a withdrawal?
No. The excise falls on the deposit. The withdrawal carries the separate 5% withholding tax on the amount paid out under the Finance Act 2025, so a KSh 2,000 payout lands as KSh 1,900 in M-Pesa.