Millions of Kenyan gamblers are set to experience a new financial burden as the Gambling Control Act 2025 comes into effect.
The law mandates that part of every bet must now go towards the Social Health Authority (SHIF) and pension savings.
Already, punters pay a 15% excise duty on stakes and a 20% tax on winnings.
The new rule adds another layer: a “savings component” taken from each bet and channelled into SHIF, or social retirement funds.
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The authority is currently in the process of formulating the specific regulations, according to Nation.
“The Authority (Gambling Regulatory Authority of Kenya) 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 Gambling Control Act 2025 says.
Reason behind the change
The government says this move will strengthen Kenya’s safety nets. With more than 12 million active gamblers, officials see this as an opportunity to expand health insurance coverage and formalise pension contributions.
The implications for gamblers
The cost of placing a bet will now rise. Players will need larger deposits in betting accounts to cover the added deductions. For regular bettors, what once felt like casual spending could turn into a more significant drain.
Industry concerns
Bookmakers warn that heavier deductions may push bets underground. They argue that punters might shift to unlicensed platforms, eroding regulatory oversight and tax bases.
Tax collections from betting already show strong growth. According to a recent report, betting tax revenue is expected to more than double in the current financial year despite recent tax-rate cuts. With the new savings levy, state coffers could gain even more.
What remains unclear
The law does not clearly explain how it will treat gamblers who already contribute to SHIF through formal and informal employment.
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It also leaves open how much of the bet will go to savings and how the system will be enforced across licensed and unlicensed platforms.
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