Millions of Kenyans who bet online will soon have to contribute part of their gambling stakes to the Social Health Insurance Fund (SHIF) and a national pension savings scheme, following the enactment of the Gambling Control Act 2025.
The new law, signed earlier this month, marks one of the most far-reaching overhauls of Kenya’s betting sector in years, introducing a mandatory social savings component that effectively makes gambling more expensive for players.
How the new law works
Under Section 44 of the Gambling Control Act, the Gambling Regulatory Authority of Kenya (GRAK) — which replaces the former Betting Control and Licensing Board — is empowered to create policies requiring every betting stake to include a savings deduction for health or retirement benefits.
“The Authority shall develop policies for placing of bets for betting, lotteries and gambling that include a savings component for social health insurance or social retirement benefit,” the Act states.
The amount deducted will be determined by the Authority in consultation with the Cabinet Secretary for Interior and National Administration, who oversees gambling policy.
The measure means that for every bet placed — whether on sports, casino games in Kenya, or lotteries — a small portion will automatically be redirected to SHIF or a retirement savings account.
Rising cost of gambling
For ordinary players, this will make betting costlier. Most betting sites in Kenya currently allow wagers from as little as Sh20 ($0.13). Once SHIF and pension deductions are factored in, bettors will need to deposit more to place the same stake.
The levy will come on top of the existing 15% excise duty on stakes and the 20% withholding tax on winnings — already among the highest betting tax regimes in Africa.
Analysts warn that the cumulative effect could reduce disposable income for Kenya’s estimated 12 million active gamblers, even as the government seeks to expand its health coverage and social protection base.
Why the government is doing it
The government says the move will promote financial responsibility and social inclusion, especially among young and informal-sector gamblers who often do not contribute to health or retirement schemes.
Officials estimate that the policy could add hundreds of thousands of new SHIF contributors, while boosting the sustainability of the national health insurer — which is currently battling Sh76 billion ($588 million) in unpaid hospital claims.
Every year, Kenyans wager more than Sh150 billion ($1.16 billion) on betting platforms. The new deductions could funnel billions of shillings into the social protection system.
“This is about aligning gambling with national development priorities — transforming it from a purely recreational activity into a tool for social welfare,” a senior GRAK official highlighted.
Industry braces for impact
While the exact percentage of the new SHIF or pension contribution has yet to be announced, the GRAK is drafting implementation regulations that will outline deduction rates, monitoring systems, and reporting obligations for licensed operators.
Some operators privately express concern that the policy could dampen betting volumes or push small players toward unlicensed offshore platforms. However, regulators argue that the GRAK’s digital compliance systems will ensure every licensed site deducts and remits contributions transparently.
Kenya’s betting landscape
Kenya’s gambling industry remains one of the continent’s most active. A FinAccess Household Survey (2024) found that 40.4% of adults aged 18–45 engage in betting, spending an average of Sh1,825 ($14.10) per month. Most players view betting as an income supplement rather than entertainment.
Despite heavy taxation, the number of licensed betting firms has grown to 188 in the 2025/26 financial year — up from 100 three years ago. Operators are taxed 15% on gross gaming revenue and 30% corporate tax on profits, remitted daily to the Kenya Revenue Authority (KRA) by 1 a.m.
Promoting savings through gaming
The government insists that the new deductions are not purely about revenue. They form part of a broader effort to instil a savings culture among citizens, tying gambling to social protection and long-term planning.
Economists say the idea aligns with Kenya’s ambition to formalise the informal sector by linking entertainment spending to welfare contributions.
However, critics caution that without clear guidelines, the policy could disproportionately affect low-income bettors and encourage migration to untaxed grey-market operators.
For now, one thing is certain — betting in Kenya is about to cost more, but it will also contribute, in part, to the nation’s health and retirement future.
