The dynamic nature of the industry and easy access to the internet has enabled gambling to be done anywhere and at any time.
The government collected Sh96 billion from betting companies in seven financial years even as the regulator admitted that it’s struggling to tame the gambling craze in the country.
The Betting Control and Licensing Board (BCLB) told a parliamentary committee that it is operating with outdated laws enacted in 1966 to tame the betting craze in the country.
Documents tabled in the National Assembly Committee on Sports and Culture show that in the last seven years, the government collected Sh96.7 billion with 2023/24 recording the highest taxes at Sh22.3 billion.
In the Financial Year 2018/2019, the government collected Sh8.5 billion as taxes, 2019/2020 Sh10.3 billion, 2020/2021 Sh9.5 billion, 2021/22 it got Sh14.7 billion, while in 2022/2023 Sh16.6 billion was collected.
In 2023/2024, the government collected Sh22.3 billion, while in 2024/2025 up to February, the government collected Sh14.5 billion, which is expected to increase by the end of the financial year.
But even as the government is raking in billions from betting companies, board Director Peter Mbugi told MPs that they are determined to ensure that the country does not lose a generation at the altar of economic gains.
“Irrespective of economic value, we must ensure social values are greater than economic gains,” he said.
Mr Mbugi however told the committee, chaired by Webuye MP Dan Wanyama, that they are operating with archaic laws and under difficult circumstances in their quest to tame the gambling craze.
Ranging from the lack of stricter penalties, budgetary constraints and technological advancement in the betting industry, Mr Mbugi urged the lawmakers to come to their rescue if betting is to be fully tamed.
“We have no money to carry out operations. As we speak today, we cannot go out there and check the operations of the betting companies. As you know our work is not sitting in the office but going out and carrying out operations,” Mr Mbugi said.
He said the dynamic nature of the industry and easy access to the internet has enabled gambling to be done anywhere and at any time, hence the board also needs to adjust accordingly.
He said the penetration of offshore websites offering unauthorised gambling products has also added an extra challenge in taming the gambling.
At the moment, Mr Mbugi said the board does not have an effective monitoring tool to enhance surveillance, enforcement and control.
The move to tame the betting craze in the country comes at a time when data shows that more Kenyans are now deeply into gambling.
According to a survey titled ‘Betting in Africa 2024’ done by a Geopoll, 83 percent of respondents from Kenya admitted to having placed a bet.
Currently, the betting industry attracts an excise tax of 15 percent on stakes, withholding tax of 20 percent on net winnings and a betting and gaming tax of 50 percent.
Betting firms are taxed on the gross gaming revenue, turnover minus winnings paid out. They also pay corporate tax profits.
Data from the Kenya Revenue Authority (KRA) indicates that in the last eight months up to March this year, the taxman collected Sh12 billion in form taxes from the betting firms.
According to statistics, Kenyans spent Sh766 billion on betting last year, which translates to about Sh2.1 billion daily and more than Sh24,000 every second.
The number of licensed betting firms in Kenya doubled to 200 between 2021 and 2023, despite increased taxation.
