Finance Committee Meets KRA Over Tax Reforms in Betting and Gaming Sector
The session, held at Bunge Tower, focused on enhancing revenue collection and addressing tax compliance challenges in this fast-growing sector.
Finance Committee, KRA Hold Talks to Review Tax Policies in Betting and Gaming Sector. Photo/Parliament of Kenya.
By Robert Assad
The Departmental Committee on Finance and National Planning, chaired by Molo Member of Parliament Kuria Kimani, on Tuesday held a high-level meeting with officials from the Kenya Revenue Authority (KRA) to review tax policies and administration within the betting and gaming industry.
The session, held at Bunge Tower, focused on enhancing revenue collection and addressing tax compliance challenges in this fast-growing sector.
The lawmakers sought clarity from KRA on several critical areas, including the current framework for taxing betting and gaming firms, the classification of digital games like the popular Aviator game, and revenue performance for the current financial year compared to the previous one.
In their presentation, KRA officials detailed the tax obligations of betting and gaming operators, which include excise duty, withholding income tax, betting and gaming tax, and corporation tax.
Notably, they confirmed that the Aviator game is classified as a digital game of chance and is taxed under existing gaming regulations.
The Authority reported a positive trend in tax collections, revealing a 15% growth in revenue from betting and gaming activities in the 2024/25 financial year up to March 2025, compared to the same period in 2023/24.
This growth, they noted, reflects strengthened compliance efforts and the expansion of the sector.
Addressing concerns over tax evasion, KRA outlined measures it has deployed to curb non-compliance, including digital monitoring tools, real-time tax remittance systems, enforcement actions, partnerships with third-party data sources, and public awareness campaigns aimed at promoting voluntary compliance.
To further boost tax administration, KRA proposed a raft of recommendations, such as deeper collaboration with mobile network operators, investment in advanced technology, mandatory comprehensive tax returns, legal reforms to tighten existing laws, multi-agency cooperation, and incentives to encourage voluntary disclosure by defaulters.
Despite the progress, the Authority acknowledged persistent challenges, including legal disputes, enforcement difficulties, tax evasion tactics, and the complexities of tracking and taxing online gaming platforms operating across borders.
KRA urged the Committee to support legislative refinements aimed at sealing loopholes and enhancing its enforcement capacity.
Kimani commended the Authority’s efforts but emphasized the need for continuous improvement in tax policy and administration, particularly in sectors like betting and gaming, which have significant revenue potential but also present unique compliance challenges.
The Committee is expected to use insights from the meeting to guide future policy decisions aimed at strengthening Kenya’s tax system.
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