Kenya Revenue Authority (KRA) says the integration will ensure that betting firms compute taxes after midnight every day and remit the same by 7am the following day.
“KRA has commenced the integration of the final 87 betting firms into the system.
This is expected to significantly enhance revenue collection from the sector,” the KRA said in its update.
The taxman said it had integrated 36 betting companies which contributed to the revenue growth in the betting and gaming sector.
KRA targets a daily collection of 7.5 percent excise duty on stakes and 20 percent withholding tax on winnings from the firms.
Tax revenue from the betting and gaming sector grew 23.9 percent to Sh15.1 billion last year compared to the same period the year before aided by the integration of betting companies into the taxman’s radar.
KRA data show excise duty charged on betting rose to 6.64 billion, representing a 116.2 percent growth and withholding tax from winnings netted Sh8.6 billion, a 21.1 percent growth from the year before.
KRA had set a target of Sh5.72 billion but which surpassed a surplus of Sh925 million.
“Excise Duty on Betting registered an exceptional performance of 116.2 percent after KRA collected Sh6.64 billion from the sector.
The increase in Excise duty on betting reflects a growth of 30 percent compared to the same period in FY 2021/2022,” said KRA in a press release sent to newsrooms.
“The performance is attributed to the integration of betting companies into the KRA tax system.”
The betting firms were required to fully onboard their systems with those of the KRA by May 12 when real-time remittance of the betting taxes was to take effect.
The system also makes data on betting firms readily available.
