NAIROBI, Kenya- Kenya Revenue Authority (KRA) has recorded a substantial increase in revenue from the betting and gaming sector, thanks to a strategic move to integrate betting firms directly into its systems for real-time tax collection.
This technological advancement has resulted in a 26pc rise in revenue, bringing in Sh24.2 billion for the 2023-2024 financial year.
In a bold move to enhance efficiency, KRA integrated 111 betting and gaming companies into its Tax System.
This integration allows real-time access to company earnings, significantly boosting tax collection from the sector.
A noteworthy increase in revenue from Sh19.2 billion in the previous financial year to Sh24.2 billion in 2023-2024.
The betting and gaming revenue comprises several taxes:
- 15pc betting tax on revenue generated from betting.
- 15pc turnover tax on all gross earnings.
- 20pc excise duty on amounts staked in betting activities.
- 20pc withholding tax on winnings from betting, lotteries, gaming, and prize competitions.
KRA’s data highlights a total revenue collection of Sh2.407 trillion for the 2023-2024 financial year, marking an 11.1pc growth from Sh2.166 trillion in the previous year.
This growth underscores KRA’s commitment to leveraging technology and data analytics to enhance tax collection processes and expand the tax base.
By harnessing technology, KRA has not only increased revenue from the betting and gaming sector but also set a precedent for other sectors to follow.
This achievement aligns with KRA’s broader strategy to improve overall compliance and expand the tax base, ensuring a robust and efficient tax system for Kenya’s future.
