Kenya to tap gambling taxes for Sh38.7billion stadium loan
The strategy places betting and gambling revenues at the centre of the state’s stadium-building programme. The Sports Fund targets collections of about Sh2.07 billion every month, with taxes and levies from the betting industry providing a major source of its revenues.
The government is preparing to tap into Kenya’s booming betting industry to finance a new Sh38.74 billion loan for the construction and completion of 33 stadiums across the country, effectively committing future gambling tax collections to repay the debt.
The Sports, Arts and Social Development Fund (SASDF) is seeking a transaction adviser and lead arranger to structure the 15-year financing facility, which will be secured against future collections flowing into the fund.
The proposed borrowing will be the second major securitisation by the Sports Fund after the Sh44.8 billion Talanta bond.
The strategy places betting and gambling revenues at the centre of the state’s stadium-building programme. The Sports Fund targets collections of about Sh2.07 billion every month, with taxes and levies from the betting industry providing a major source of its revenues.
The scale of the gambling industry has strengthened the government’s ability to use the revenues as collateral for long-term borrowing.
Data from the Kenya Revenue Authority shows gamblers placed bets worth a record Sh330.5 billion in the year to June 2026, up sharply from Sh88.2 billion the previous year.
The surge in betting activity generated Sh16.5 billion in excise tax revenue, exceeding the KRA target of Sh14.26 billion. Betting taxes increased by 24.9 per cent during the period.
Under the proposed arrangement, the future revenue stream will effectively be used to pay interest and principal to lenders, allowing the State to raise money immediately against taxes expected to be collected over the life of the facility.
The new borrowing will finance 33 new and ongoing stadium projects, including facilities in Mombasa, Kisumu, Nakuru and Eldoret, as well as projects in more than 20 other counties. Kasarani and Nyayo national stadiums are also being upgraded ahead of the 2027 Africa Cup of Nations, which Kenya will co-host with Tanzania and Uganda.
The financing model follows the Talanta bond, whose proceeds are funding the 60,000-seat Raila Odinga Stadium in Nairobi. The Sports Fund is expected to spend Sh6.5 billion this financial year servicing that bond, including two Sh3.25 billion payments.
The latest plan comes as the government increasingly turns to securitisation of dedicated revenue streams to fund major infrastructure projects amid limited borrowing headroom and public debt of about Sh13 trillion.
The Sports Fund has been allocated Sh25.2 billion in the 2026/27 budget, within the wider Sh45 billion allocation to the Sports and Tourism Ministry.
