Betting your future away as government goes after gaming earnings

Kenyan gamblers will soon have part of their betting stake automatically deducted to fund their Social Health Insurance Fund (SHIF) and retirement savings under sweeping reforms introduced in the new Gambling Control Act, 2025 regulated by the Gambling Regulatory Authority (GRA), formerly the Betting Control and Licensing Board (BCLB).

Effectively, millions of gamblers will soon be forced to cede a portion of their betting stakes to SHIF and pension in line with legal changes that will make gambling costlier.

The Gambling Control Act 2025 gives the betting regulator powers to develop policies that will include, among other things, a mandatory savings component for SHIF or social retirement benefit for every betting stake.

The new law, which replaces the Betting, Lotteries and Gaming Act, introduces a mandatory savings component into every formal bet placed in the country.

The newly introduced controversial policy will inevitably make betting one of the most heavily deducted activities in the country.

Starting this month, anyone placing a bet in Kenya will automatically have money deducted for three different government programs before their wager even goes through.

SHIF takes 2.75 per cent, the Affordable Housing Levy claims 3 per cent, and the National Social Security Fund (NSSF) adds up to 6 per cent on qualifying amounts.

This comes on top of existing taxes: a 15 per cent excise duty on stakes and a 20 per cent withholding tax on winnings.

Licensed operators must now channel deductions to government accounts by the 9th of each month, with automated systems tracking every transaction.

Last year, Kenyans wagered Sh88.5billion generating Sh6.64 billion in taxes alone. Industry analysts predict activity could drop 10 to 15 per cent under the new regime, similar to what happened after the 2023 withholding tax increase on winnings.

The new policies will allocate a portion of every betting stake to government savings initiatives.

The state is enacting these changes through powers granted to the betting regulator under the Gambling Control Act of 2025.

This Act allows the regulator to develop policies that will include a compulsory savings component for SHIF or a social retirement benefit for every single betting stake placed. “A mandatory pension contribution or payment to SHIF will make betting costlier.”

The new contributions offer the government a significant financial boost, described as a “windfall,” due to the widespread betting craze. Punters currently place bets worth more than Sh150billion every year.

The primary goal of deducting money from betting stakes is to expand the membership pool of SHIF.

This mandatory contribution comes at a crucial time, as the state health insurer is currently grappling with an unpaid bill of Sh76billion owed to both private and public medical facilities.