In late April 2026, Kenya’s parliament began debating the Finance Bill 2026. One amendment immediately sent shockwaves through the betting community. The government wants to bring back a 20% tax on winnings.
Currently, the rate is just 5%. It was lowered in 2025 to support the legal market. But in the government’s view, the budget is missing out on about 8 billion shillings a year. The hike is meant to close that gap.
For the average player, this is not just numbers in the news. It’s a direct hit to the bankroll. When every shilling counts, the difference between 5% and 20% becomes very real.
At times like this, having quick access to your platform is crucial. Many are already switching to the 888starz mobile app — where payouts are processed automatically and all tax deductions are clearly visible in the transaction history. No need to guess how much will be taken out when you withdraw.
What Exactly Does Finance Bill 2026 Propose?
The current 5% rate was introduced only last year. Back then, the government lowered it from 20% to stop players from moving to offshore operators. Now everything is going back.
The parliamentary finance committee has already held its first hearings. A vote is expected in June. If the amendment passes, the new rules will come into effect on 1 July 2026.
What changes for the bettor? Every win will be subject to 20% withholding tax. The bookmaker will deduct the tax automatically before sending the money to your M‑Pesa.
Let’s look at real‑world examples of how much you’ll lose:
| Bet Amount (KES) | Odds | Winnings (KES) | 5% Tax (KES) | 20% Tax (KES) | Difference (KES) |
| 500 | 2.00 | 1,000 | 50 | 200 | 150 |
| 1,000 | 1.50 | 1,500 | 75 | 300 | 225 |
| 2,000 | 3.00 | 6,000 | 300 | 1,200 | 900 |
| 5,000 | 2.50 | 12,500 | 625 | 2,500 | 1,875 |
Over a month of active play, it adds up significantly — especially if you bet often and in larger amounts.
Why the Government Is Bringing Back the Higher Tax
The KRA claims that lowering the rate in 2025 did not lead to the expected growth in tax revenue. There are more legal players, but total collections still fell. The budget lost about 8 billion shillings. That’s exactly the gap the new law aims to close.
However, experts warn that raising the tax could backfire. Some bettors will go underground, and revenues could fall again.
Kenya is not the only country experimenting with betting taxes. In Tanzania, for example, the rate is 15%, in Uganda 20%, and in Nigeria it goes up to 30%. But Kenya’s neighbours have lower mobile money penetration and weaker offshore controls. In Kenya, M‑Pesa makes all transactions traceable. Going underground here is harder than almost anywhere else.
How Bettors Are Reacting to the News
In Nairobi bars and Telegram chats, debates are already raging. Some are threatening to switch to cryptocurrencies. Bitcoin transactions are harder to trace, and some platforms do not withhold tax on crypto deposits.
Others are looking at offshore bookmakers that don’t deduct tax at all. But both options come with serious downsides.
Here are the main risks:
- Offshore sites. They often delay payouts or simply disappear with your money. They have no BCLB licence, and there’s no one to complain to.
- Cryptocurrency. By the time Bitcoin reaches your wallet, its exchange rate may have dropped 5–10%. The tax saving loses its meaning.
- Breaking the law. Tax evasion is an offence. The KRA can fine you if it discovers undeclared income.
- Security. Offshore platforms do not encrypt data the way local licensed operators do. Your account could be hacked.
Therefore, the most rational approach is not to flee the market, but to adapt. Review your strategy, factor the tax into your expected returns, and choose platforms that make the process as transparent as possible.
How to Prepare for the Changes
Here is a step‑by‑step action plan for any Kenyan bettor:
- Check your platform. Go to your transaction history. Does the bookmaker currently withhold tax? If yes, you’ll immediately see the difference after the increase. If not, you may be on an offshore site — a reason to think about security.
- Update the app. Older versions may not display the new tax rates. For Android, download the latest 888bet download from the official website. For iPhone, install 888starz ios via the App Store. In both cases, you’ll get full access to your transaction history and can track every deduction.
- Use bonuses wisely. Welcome packages, cashback, and reload bonuses can offset part of the tax loss. If a platform gives 100% on your first deposit, that doubles your bankroll. Even after a 20% deduction, you stay ahead. Just be sure to read the wagering terms carefully.
- Plan your bankroll with tax in mind. If you want to walk away with 10,000 shillings, bet with the understanding that 20% will go to the state. This is especially important for professional players who rely on betting for a living.
- Follow the news. Finance Bill 2026 hasn’t been passed yet. Amendments that soften the terms are still possible. Subscribe to platform notifications or check the KRA website for updates.
What Experts and Regulators Are Saying
Joseph Limo, head of the Gaming Regulatory Authority (GRA), said at the iGaming AFRIKA summit in Nairobi in April: “Taxation is a statement of the government’s intent. We will ensure that the increase does not lead to a mass exodus of players to the illegal sector.”
On the other hand, PwC Kenya noted in its analysis that returning to a 20% rate “could reduce the attractiveness of legal platforms.” The firm estimates that up to 15% of active bettors could move into the grey zone within the first six months of the increase.
For professional players, the tax becomes critical. If you earn 100,000 shillings a month from betting, after the hike you’ll be giving away 20,000 instead of 5,000. That’s a serious amount that will force many to look for alternatives.
What Will Happen to Bookmakers
Local operators are also nervous. SportPesa, Betika, 888Starz, and other platforms invest millions in sponsoring Kenyan sports. A tax increase could reduce their revenues and, consequently, shrink sponsorship budgets.
The Kenyan Premier League, rugby tournaments, athletics events — all depend on advertising contracts with betting companies. If there’s less money, the entire sports sector suffers. That’s why many operators are opposing the bill and proposing a compromise: raise the tax, but not to 20% — to 10–12% instead.
Conclusion
Finance Bill 2026 hasn’t been passed yet, but you need to start preparing for changes now. The key is not to panic and not to run to offshore operators. Legal platforms offer protection, transparency, and convenience that no grey‑market scheme can replace.
Update your app, check your transaction history, revisit your bankroll strategy. And remember: tax is part of the game. Those who plan around it stay ahead in the long run.
FAQ
When will the new tax on winnings take effect?
If parliament approves Finance Bill 2026, the changes will come into force on 1 July 2026. Until then, the 5% rate remains in place.
Will deposits be taxed?
No, tax is only deducted from winnings, not from deposits. If you top up and lose, no tax is charged.
Can I avoid the tax by using cryptocurrency?
Some platforms do not withhold tax on crypto transactions, but that does not exempt you from declaring your income to the KRA. Failure to pay tax can lead to fines.
How do I check if my platform deducts tax?
Open your transaction history in the app or on the website. If you see a deduction labelled “Withholding Tax” or “WHT”, the tax is being withheld. If not — contact support.
