Kenyans who place bets will soon need to set aside part of their money for medical and retirement savings, after the government moved to introduce compulsory deductions from each stake.
This new requirement, tied to the Gambling Control Act 2025, will add another layer of cost to betting and is expected to reshape how millions of gamblers interact with betting platforms.
The law gives the Gambling Regulatory Authority of Kenya the mandate to create rules that will attach a health insurance or pension savings portion to every stake.
This means that anyone placing a bet will have to contribute to the Social Health Insurance Fund (SHIF) or a social retirement plan on top of existing taxes. Today, every stake attracts a 15 percent excise tax, while winnings are charged a 20 percent withholding tax. With the new measure, the total cost of betting will rise even more.
Kenya has more than 12 million active gamblers, many of them young adults. The State is looking to bring this large group into the SHIF system and boost contributions to support the new universal health programme.
Under SHIF rules, all citizens must enrol and contribute every year, with salaried workers remitting 2.75 percent of their pay and those in the informal sector assessed at the same rate.
However, the Act does not explain how gamblers who already pay SHIF will be handled once stake-based deductions kick in.
“The authority (Gambling Regulatory Authority of Kenya) shall develop policies for placing bets for betting, lotteries and gambling that include a savings component for social health insurance or social retirement benefit,” the law states. “The minimum amount set under subsection (1) shall be inclusive of such a saving component for the player as shall be determined by the authority in consultation with the Cabinet Secretary.”
Gambling has become one of the biggest spending areas for many Kenyans, with yearly betting activity exceeding Sh150 billion.
The government has steadily raised taxes on the sector to curb addictive behaviour, while also reaping revenue from a booming market. SHIF collections from betting stakes come as the national health fund carries a Sh76 billion debt to health facilities, making increased contributions critical for its survival.
The shift is part of a bigger national push to encourage saving, especially among informal workers. The newly established Gambling Regulatory Authority, which takes over from the Betting Control and Licensing Board, is already working on the detailed regulations to guide the mandatory deductions.
Despite stricter rules and rising charges, betting remains widespread, particularly among younger Kenyans. A survey by the Central Bank of Kenya and the Kenya National Bureau of Statistics shows that 40.4 percent of individuals aged 18 to 45 gamble, spending an average of Sh1,825 monthly.
The 2024 FinAccess Household Survey shows Kenya has the highest share of youthful gamblers in Africa at 76 percent, ahead of larger economies like Nigeria and South Africa.
With the minimum bet set at Sh20, players will need larger balances on their betting accounts to meet the savings rule. The new deductions will tighten the squeeze on punters, who already face multiple taxes.
But the industry continues to grow, with 188 licensed operators this year compared to 100 three years ago, even though some firms exited due to high tax pressure. Betting companies pay 15 percent tax on gross gaming revenue, and a 30 percent corporate tax on profits, which must be paid by 1am daily.
