Kenyan Gamblers Have Staked Over Ksh 600Billion In The Last Four Years
Gamblers in Kenya engaged in bets totaling Sh620.97 billion between 2018 and the previous year, showcasing the fervor that has established Kenya as a hub for the highest percentage of young punters on the African continent.
A recent report presented to the National Assembly Committee on Sports and Culture divulged the intense betting culture, attracting millions of Kenyans—both employed and unemployed—seeking quick financial gains.
With 76 percent of the country’s youth participating in gambling, Kenya maintains the highest percentage of young bettors in Sub-Saharan Africa. These individuals, on average, spend more on betting compared to their counterparts across the continent. Despite increased taxation attempts, the betting trend continues to persist.
Gamblers in Kenya are subjected to tax on every winning bet, in addition to an imposed levy on the amount staked, while gambling firms face a myriad of escalating taxes aimed at curbing the allure of the Kenyan gambling market.
The report highlights that Kenya boasts the third-largest gambling market in Africa, estimated at approximately Sh200 billion annually, trailing behind Nigeria and South Africa, owing to the multibillion-shilling expenditure on betting activities.
The report, while lacking specific yearly figures on punters’ stakes, reveals that betting firms disbursed Sh532.72 billion to gamblers as winning payouts within the stated period. Simultaneously, these firms accumulated Sh88.24 billion in gross gaming revenue from 2018 to 2022.
The State has implemented deliberate taxation strategies to discourage gambling, imposing a 12.5 percent tax on each betting stake, along with a 20 percent withholding tax on all winning bets.
In addition to the tax burden on gamblers, betting firms face taxation on their gross gaming revenue at a 15 percent rate (computed as turnover minus payouts) and a corporate tax on profits at a 30 percent rate.
The prevailing trend indicates that gamblers, many facing unemployment, increasingly turn to betting as a means to cover daily expenses, seeking quick financial relief.
The typical profile of a gambler, as outlined in the report, identifies them as male, under 36 years old, hailing from low-income households, and possessing at least a secondary school education.
With the promise of substantial stakes wagered yearly by punters, numerous betting firms are aggressively entering the Kenyan market, vying for a portion of the lucrative industry.
Recent data from the Betting Control and Licensing Board illustrates that among the 110 licensed betting firms, 22 are newcomers endeavoring to establish their presence in the market.
