Kenya’s betting industry could be heading for another major shake-up after the Consumers Federation of Kenya (COFEK) strongly opposed a proposed 20% withholding tax on gambling winnings in the Finance Bill 2026.
In a submission to the National Assembly Finance and Planning Committee, COFEK warned that the new tax would place an excessive financial burden on bettors and make Kenya one of the toughest gambling tax markets globally.
According to Consumers Federation of Kenya (Cofek), the combined measures risk discouraging player activity, disrupting the betting ecosystem, and creating fresh pressure for licensed operators already navigating a highly taxed market.
The organisation is now calling on lawmakers to reconsider the proposal before the Finance Bill proceeds to its Third Reading in Parliament.
If approved, the tax changes could reshape Kenya’s gambling landscape and further intensify debate over how far governments should go in taxing Africa’s booming betting sector.
The consumer rights group argued that when combined with existing excise duties, operator levies, and other betting-related charges, the proposed framework could significantly increase the cost of gambling participation for ordinary Kenyans.
The Finance Bill 2026, which was tabled in Parliament on April 30, officially entered the public participation phase on May 11. Alongside the proposed 20% tax on winnings, the bill also introduces an additional 5% tax on withdrawals linked to gambling transactions.
