Efforts by Kenya Revenue Authority (KRA) to integrate company revenue platforms into its tax system saw the Authority rake in enhanced revenue collection from betting and gaming companies in Kenya during the 2023/24 financial year.

This is after KRA registered a double-digit growth rate of 26.2 percent in revenue collection from gambling activities to KSh24.2 billion during the 2023/2024 Financial Year up from KSh19.2 billion earned a year earlier.

The betting and gaming revenue comprised 15 percent betting tax charged on revenue generated from betting, a 15 percent turnover tax charged on all gross earnings, 20 percent excise duty charged on amounts staked in betting activities, and a further 20 percent withholding tax charged on winnings made on betting, lotteries, gaming and prize competitions.

The system integration gave KRA real-time access to 111 companies in the gaming and betting sector that have been on-boarded on the Authority’s Tax System, thereby streaming revenue collection from the sector.

The growth in revenue from betting taxes highlights KRA’s commitment to leveraging technology and data analytics to enhance tax collection processes. This is part of the Authority’s broader strategy to expand the tax base and improve overall compliance.

Overall, KRA recorded a total revenue collection of KSh2.407 trillion for the Financial Year 2023/2024, compared to KSh2.166 trillion in the previous financial year, marking an 11.1 percent growth from the previous year.

This achievement underscores KRA’s commitment to enhancing voluntary compliance as well as ensuring a fair and efficient tax system.